(By the way, I'm not disputing anything you said. pg's point about real estate prices is what reminded me of the Yogi Berra quote.)
Or:
1. It's extremely difficult to build. Only moguls can build new properties in New York, hence the emergence of the massively overpriced "luxury buildings" with unnecessary and expensive conveniences.
2. Government irresponsibility. The New York government should be barring the parentally-funded nonproductives (e.g. fashion interns who whine to their daddies and get $5000/month apartments and useless hipster idiots) from living here, because of their effect on the rents, but right now that isn't happening.
I would much rather deal with a bureaucratic inconvenience such as this than get robbed blind on rent, and have absolutely no recourse. In other words, my answer is yes, because that would be an absolute improvement over the current, disastrous arrangement.