[mhays]

In most places, interest rates have a big effect.

Development costs are far higher due to high commercial loan rates. A few additional percent over four years is a big deal. Commercial rates also hit supply chains on the construction side, contributing to higher construction costs. Further, underwriting standards are too high, with too much equity required, so developers have less capacity and many can't get financing at all.

As for the home sale market, most buildings mix some penthouses with large numbers of cheaper units. The typical buyers are just randos (like me) making normal incomes, and most of use need financing. (Sorry about your rates in the threes, guys...2.85% here.)

The Seattle market is very different from NYC. Units below about $700k have tended to do well but the million-plus units have historically gone more slowly. More recently, we've also been hit by the reduced need to live near work and by limits on personal funds leaving China. That's despite relatively little new supply due to some of the nation's worst condo liability laws.