That equals a seller's market. The only answer is to increase the productivity of urban land. Think of a manufacturer of a widget who has increasing demand but can't find the materials to produce it. He can look globally, which might result in higher costs, but he will find his raw materials. Land, however, is not a widget.
Land is always local.
That's why office rents rise, industrial buildings inflate, apartment rents expand and home prices hit the stratosphere. What is happening is classic real estate inflation without the usual new construction of too much supply. Traditionally, when a market is hot, lenders can't wait to make new loans to builders, investors jump into the fire and the result is saturation of marketplace. Now the only signs of over-construction are at the market's high end. There simply is no low end.