Let's be honest, demand for 3 bedrooms is small, which is the only reason not many of them are being built. At Y/E, at 550/sf, a 1200sf three bedroom will cost $660K, plus $40-50K for a parking spot; assuming $0.5/sf condo fee, monthly condo fee is a whopping $600 a month, to be escalated 3-5% a year. Let's ask ourselves, how many of us here are willing to buy these units, instead of a $700k nice single family house with no fees a bit farther away from the core?
San Francisco is another example where supply of housing has been restricted, resulting in very unaffordable prices. On the other hand, cities like Chicago have been pro-development, which has kept housing price quite affordable (no it is not because Chicago is less desirable, it has a massive population).