NYC and HK are perfect examples where adding supply did not solve the problem of high cost of living. That's the risk in Santa Cruz - that we lose the unique the character and it remains expensive.
Hong Kong is politically constrained.
That said, high rise is enough more expensive that I wouldn't expect cheap units to be in those buildings in general (unless the penthouse is valuable enough to subside lower levels). The mid rise (~5 floors) is a much better deal for most people.