At the end of the day, the reason more housing isn’t built is that the incentives are greater to not build it. You can build a high rise with shoebox apartments that have to be aggressively managed and make a profit. Or you can build a high rise with half the units, higher reoccurring revenue and less hassle and make 2x the immediate profit.
At the end of the day as long as there is demand for more expensive housing that’s what’s going to get built.