My apartment in Manhattan houses as many people as a square mile does in Colorado using 1/10,000th the space. At a certain point we have to acknowledge that the government would rather you just be poor.
If you wanted to double the population of Vail by adding apartments of the size I laid out (a midsized, 5 story building) It would take up .2% of Vail's legal area. I'm not really suggesting that -- but pointing out that the government would rather the working people of these towns to live out of their cars, or live in overcrowded dorms rather than allowing people the basic dignity of an affordable place to live.