> costs are much higher

Much of this is caused by the high cost of housing. Everyone needs to be paid enough to live here or enough to be worth commuting long distances.

> availability of labor and land are extremely constrained

That's not really true. There's not a lot of empty land, but there's huge swaths of underutilized land. Only zoning law prevents it from becoming more useful. Instead we get crumbling single family homes a few miles from a growing number of skyscrapers.