Dense housing creates highly walk-able cities with extremely good public transportation. Furthermore, high density foot traffic creates improved economies of scale for businesses. Economies of scale might shift society to one where you don't need to cook at home because good inexpensive food is everywhere. Businesses themselves benefit from high concentrations of skilled workers in more condensed areas. The total cost of commuting for society diminishes. Public works also benefit because more people can benefit from every dollar spent. Dense living lets people take advantage of the economies of scale of the businesses and infrastructure around them.
The end result of dense housing is a highly desirable place to live, in other words, increased demand for housing, locally.
This can be seen in housing prices in NYC, Taipei, Seoul, Tokyo, Hong Kong, Singapore, etc.
So it is not dense housing that makes housing costs drop, it is dense housing built in excess of demand... But incumbent property owners will resist that tooth and nail because if production of housing can satisfy demand, their capital investments (and very often sole vehicle of retirement income) will decrease in value. When a person's wealth decreases, they desire political change. So housing policy that results in lower housing costs is extremely unpopular among those with power (education, money, time, etc.).
The end result of dense housing is a highly desirable place to live, in other words, increased demand for housing, locally.
This can be seen in housing prices in NYC, Taipei, Seoul, Tokyo, Hong Kong, Singapore, etc.
So it is not dense housing that makes housing costs drop, it is dense housing built in excess of demand... But incumbent property owners will resist that tooth and nail because if production of housing can satisfy demand, their capital investments (and very often sole vehicle of retirement income) will decrease in value. When a person's wealth decreases, they desire political change. So housing policy that results in lower housing costs is extremely unpopular among those with power (education, money, time, etc.).