Has nothing to do with rent seeking. Density ruins neighborhoods.
Copenhagen ist built almost completey like that and has a population of about 800k. It feels great: Quite urban, with many cafés and small shops, while still feeling friendly and human. Much of Berlin is also like that.
But if you do allow job creation, while not creating housing for the people working those jobs, that absolutely is rent seeking.
Can you give examples?
Nothing to do with rent seeking. The only thing increased property value does is make property tax and excise tax go up. Nobody cares about that. We don’t want a condo building dropped on both sides of us. Who would?