People like to point to Tokyo as an example of YIMBYism fixing housing affordability, but I am skeptical of this explanation because 1) it fails to explain Japan’s spectular property bubble of the 1980s which happened in spite of its government loosening housing policy, and 2) housing prices in Japan are also currently rising and hitting all time highs.
Indeed, it was noted that loose housing policy during the 1980s bubble instead seemed to contribute to higher land and house prices, as developers prioritised office and retail space which had higher margins, at the expense of housing.
Instead, some economists attribute Japan’s relative affordability to their general fear in the property market that was leftover from the bubble bursting.
Also, property developers care very much about how valuable it is after they’ve sold it. This is because the more valuable property is, the higher their margins for future projects.