alt Hacker NewsThey are competing, but not for the customer but for the land, which appreciates. Remember, there are different forms of competition.
The "supply constraint" is that the landowners don’t want to change zoning laws, and that space around big cities is limited. The government doesn’t act of it’s own initiative, it represents people.
If your logic held, it should be the homeowners pushing for density. Real world disagrees with your assessment, but you seem to be doubling down on it.
Why not update your model?
> The "supply constraint" is that the landowners don’t want to change zoning laws
The only ones who are acting in their own interest are the ones who own land that already contains a tall building and who either don't live in the area or are so rich they aren't affected by local cost of living, and they're quite outnumbered by everyone else.
> If your logic held, it should be the homeowners pushing for density.
It's possible and even common for people to be misinformed about the effects of a policy and then vote against their own interests.