There are some fantastic breakdowns in market feedback here. The main one is that, for San Diego to develop an entire city of multi-story condo units at the intensity suggested by the underlying land values, the city would need tens of millions of new people. That’s not going to happen, so prices should drop. They don’t, and that’s because the next increment of development is not allowed. Or, where it is allowed, it has nearly as cumbersome a regulatory process, with as much uncertainty, as a more intensive development.
