reducing everything to zoning laws is lazy analysis. nobody will ever sell $4 lunch bowls in SF because the rent is too high. so these market incentives will influence/force the proprietor to sell them for more!
The rent is too high because of zoning laws.
we've built a ton of structures with existing zoning laws when the economy is good, more than we've built during this deregulation paradigm. we stop when the economy or market is bad. very simple concept.