That's the plan! https://www.seattle.gov/Documents/Departments/HALA/Policy/MH...
Zoning adds risk to projects and creates an overheated housing market, where the cost of housing is land cost, construction costs, & zoning cost plus whatever the seller can get thanks to the artificially constrained supply.
"They aren't making more land" is entirely due to zoning ensuring most of the city is underdeveloped.