I've thought about that for a while and agree that's a big problem. I wonder if people unwilling to 'exit' bear some responsibility too?

I agree most owners are incentivized to have their leveraged ROIC be high. So they put pretty strong pressure against supply increases.

Defectors (other neighborhoods, cities, regions, states) and other living options might tank actual long term ROIC of supply constrained places. The economics eventually stop working in the supply constrained place as the real cost of housing production is significantly lower elsewhere.