Overloading /imbalance.

The reason for the seeming imbalance is that there are branches of the city’s Department of Investigation and the Housing Authority that police the theft of government housing funds.

Any time the gubmit injects itself into a free market economy, there later are inevitably mass imbalances and disruptions in the economy.

A temporary market imbalance, combined with cheap borrowing costs (ultra-low interest rates). 

So why does there seem to be such a huge imbalance between supply and demand?

Even if construction is elevated back to pre-recession levels (and that's a big if); it will take several years of heightened construction to balance out the supply/demand imbalance.  

I suppose the issue is when you liquidate, depending on what order you sell may imbalance your numbers. 

The city’s vacancy rate has plummeted to a mere 1.4%, the lowest since 1968, amidst a stark imbalance between housing supply and demand.Despite adding 60,000 homes, the population surge of 275,000 households has left only 33,000 rental units accessible.

Real estate is hyper local :) Econ 101, Follow the Supply/Demand imbalances

As a result, permitting is being restricted so that's where the supply/demand imbalance is going to increase in values.