Earlier quoted context omitted.
What's pushing people out is the rising cost of property, caused by more and more money bidding for less space. If the government had done more to create more space, prices would not have risen so dramatically. What if government policy for the last few decades had been to keep housing as affordable as possible. So if average rent in a city started increasing, the government would make sure new apartments and got bui…
We'd end up with megacities who'd continuously expand and grow denser, swallowing their surroundings in that case, wouldn't we?
Suppose you create a lot of high density housing in the city. Housing costs decline. People who used to have to live with their parents get their own place. People have shorter commutes.
The population of the city hasn't changed. Maybe if you're the only city doing this then it's a competitive advantage and people move there from other cities to take advantage of the lower cost of living. But if all cities do this then there is no relative advantage and all that happens is that housing is more affordable and people waste less time sitting in traffic.