Much of Silicon Valley also fits the bill of places that were drab faceless suburbs in the 1980s when people’s parents bought houses there. But it’s not like there wasn’t expensive suburbs in the 1980s. It’s just that Mountain View today occupies the same market position Scarsdale NY or Greenwich CY occupied in the 1980s.
The general problem is overpopulation--but the good news is that there's a countervailing force built in: the more people there are, the more stuff of value there can be. New York's too congested to live in? Go to Chicago. Chicago becomes full? Live in Minneapolis, or Madison, or some up-and-coming artsy small town most of us have never heard of. So, the problem we actually experience is not overpopulation itself but, rather, the weighted overpopulation that is created by extreme inequality (i.e., by some people having 1,000,000 times more votes and more choices than the rest of us). When some rich douchebag can play the high school bully and buy hotel rooms for $1000 per night (or even buy out the whole hotel) it means everyone who can't pay $1000 per night for lodging suffers. We don't actually need to depopulate the world (although, and I hate to say this, I think traumatic and unplanned depopulation is a high likelihood in the next 50 years) so much as we need to do something about the astronomical footprint of the rich; we could support the global population that exists now if only the world were run by better people and the resources better organized.