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NYC is such a desirable place for people to live that demand will be very strong and supply will be tight for a very long time. Economics 101 suggests that prices will be elevated as a result.

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Markets rush to equilibrate. When demand is high, prices go up, which causes suppliers to rush to produce more supply to take advantage of the prices, which has the effect of moderating prices. If the New York housing market were unregulated, you'd see vast swaths of the city bull-dozed and replaced with skyscrapers, increasing supply and bringing down prices. The fact that you don't see particularly much construction in New York, despite skyrocketing prices, is a sign that something is very wrong with the market.

Compare a place like Toronto, which is also a high-demand market and seeing an incredible building boom right now as old buildings are torn down and skyscrapers are put up.

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