"Nobody drives in New York because there's too much traffic."
Building more housing does alleviate the problem. It both alleviates (for the newly housed) and exacerbates (makes more people want to move in). Even if the queue length stayed the same, the fact that the number of housed people goes up means that proportionally, more people are happy.
But, let's be realistic here: Tokyo has more affordable rent than LA, despite having ~4x the population. And Japan invented the concept of the intergenerational mortgage!
Building more housing does alleviate the problem. It both alleviates (for the newly housed) and exacerbates (makes more people want to move in). Even if the queue length stayed the same, the fact that the number of housed people goes up means that proportionally, more people are happy.
But, let's be realistic here: Tokyo has more affordable rent than LA, despite having ~4x the population. And Japan invented the concept of the intergenerational mortgage!