IMO the two culprits are high rents and efficient capital markets. Definitely many factors contributing to the first, but one of them is also the efficiency of capital markets.
Basically it's too expensive to make spaces available for below market rate due to the direct cost of rents (a middle or upper-middle class person could drop $1000/month on a passion project, but not so easily $5k/month) and there's a very high opportunity cost to forgoing revenue/profit, because you can find buyers willing to buy you out for 3-25x incremental profit. That opportunity cost makes it tempting for any community space to instead chase profit. But it also makes non-residential property more expensive because you're bidding against companies that are able to convert incremental $1000/mo profit to $50k-100k in realized value, even if you aren't intending to do that.
Rents themselves are very competitive not just from low supply but also because technology has made the rental market very "efficient"/liquid - it's easy to market a property and accurately price it, so sweetheart deals/underpriced leases are difficult to find. Plus rental properties themselves have been very well financialized as well - increases in incremental revenue/profit of commercial real estate can be recognized as many-times-more increases in equity by lenders, which can be accessed by loaning against the equity. So sweetheart deals are more costly to lessors than before.
I don’t remember where I read this, but I remember reading recently how somebody justified their decision to leave “the city” to move to a rural area, with the phrase “I was tired of competing with my neighbors”.
I they were trying to convey sense you describe, of intense economic pressure to make a certain income to pay for a certain living or working space, or alternatively be kicked out because there are ten people in line waiting to take your space.
Perhaps a healthy culture cannot survive this degree of “efficiency”.
Basically it's too expensive to make spaces available for below market rate due to the direct cost of rents (a middle or upper-middle class person could drop $1000/month on a passion project, but not so easily $5k/month) and there's a very high opportunity cost to forgoing revenue/profit, because you can find buyers willing to buy you out for 3-25x incremental profit. That opportunity cost makes it tempting for any community space to instead chase profit. But it also makes non-residential property more expensive because you're bidding against companies that are able to convert incremental $1000/mo profit to $50k-100k in realized value, even if you aren't intending to do that.
Rents themselves are very competitive not just from low supply but also because technology has made the rental market very "efficient"/liquid - it's easy to market a property and accurately price it, so sweetheart deals/underpriced leases are difficult to find. Plus rental properties themselves have been very well financialized as well - increases in incremental revenue/profit of commercial real estate can be recognized as many-times-more increases in equity by lenders, which can be accessed by loaning against the equity. So sweetheart deals are more costly to lessors than before.