It seems paradoxical to me that the only "solution" to housing shortages, which exist because the area is too attractive in large part because of the availability of jobs, is to build more houses and thus make the area more attractive to businesses because of the increased availability of workers. It looks like a battle against windmills that is bound to get out of hand. Efforts to alleviate the problem only exacerbate it.
It would be interesting to see if the shortage could be reduced by taking a different approach and making the area less attractive. For example, you could tax businesses much more if they are located in very dense areas, or even just limit the total revenue of all businesses in a certain area. Such things would have their own problems and challenges, of course, but there are few economic problems as bad as the housing crisis, and there is more than enough land to go around.
It would be interesting to see if the shortage could be reduced by taking a different approach and making the area less attractive. For example, you could tax businesses much more if they are located in very dense areas, or even just limit the total revenue of all businesses in a certain area. Such things would have their own problems and challenges, of course, but there are few economic problems as bad as the housing crisis, and there is more than enough land to go around.