The problem is housing, in general, is a an inelastic good - we can't just apply free market thinking to it, it doesn't work. For a few reasons:
1. It takes a really long time to develop housing in a meaningful way, like on the order of decades to build communities.
2. People don't actually really choose where to live, it's a lot like hospitals. You live where your job is, which means the more economically strong a place is (city) the more housing you need. Which is why cities are dense. It might sound obvious, but it's not like choosing which brand of cereal to buy.
1. It takes a really long time to develop housing in a meaningful way, like on the order of decades to build communities.
2. People don't actually really choose where to live, it's a lot like hospitals. You live where your job is, which means the more economically strong a place is (city) the more housing you need. Which is why cities are dense. It might sound obvious, but it's not like choosing which brand of cereal to buy.