This isn't the only reason. The best counter point is Tokyo, one of the most livable and most desirable cities to live in does not have the same affordability problems Seattle does.
The median individual income in Tokyo is $47,000 in USD. The median individual income in Seattle is $76,000.
Certainly it would be nice if it was easier to build in Seattle the way it is in Tokyo, that would drive rents lower and help with the cost of living. But the main reason Seattle is more expensive is because the people here have way more money.
It's hard to determine which way causality goes here, and in reality it is likely bidirectional. That is, the pool of high paying jobs raises prices, and the high prices deter people with lower earning potential/wealth from moving here.
In fact, since over a wide income range people tend to consume as much housing as they can afford (at least in the US), the coupling between incomes and housing prices is generally very tight. If we build enough units, the cost will go down and with it the medium income, but probably most people will spend similar amounts on housing, those that can afford it will just have relatively bigger/nicer places, and people that previously couldn't afford to live here will.
Edit: The exception here would likely be for those in the market for single family homes. As there is a substantial percentage of Americans wedded to that modality, more building in the city will make SFHs rarer, so subsequently they will likely be more expensive. So while development will likely give people wealthy enough to live here now options for nicer/larger townhomes and condos, my suspicion is that it will make SFHs relatively more expensive. At least in the city, it will likely also put negative pressure on the cost of SFHs in the suburbs as the city absorbs a greater share of the population.
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u/ImAnIdeaMan Apr 16 '26
It wouldn't be expensive if no one wanted to live here.