Construction is not cheap. If what you were saying were true renovations would be cheap, which they are not. And the land becoming more expensive is the point.

Construction is not cheap. If what you were saying were true renovations would be cheap, which they are not. And the land becoming more expensive is the point. If an area becomes more popular then it will be denser meaning the land is more expensive meaning the housing is more expensive. Building denser does not necessarily result in cheaper housing in the net.