Economic theory says some things are theoretically impossible, no literally, but economic theory wouldn't say that here:

The local housing market is much more complex than supply and demand, with larger economic factors (e.g., interest rates), very imperfect information (affecting everyone from buyers, to sellers, real estate agents, lenders, etc.), coordination by landlords (e.g., RealPage), non-economic factors such as prejudice (or just a co-op board!), government actions, larger trends, temporary inefficiencies, etc.

Economic theory is useful, but it does not predict or circumscribe the immediate reality of individuals. Life is much more complicated than that.