This only happens if zoning limits housing supply. As urban demand goes up, builders are incentivized to keep building denser ...... until equilibrium is reach

This only happens if zoning limits housing supply. As urban demand goes up, builders are incentivized to keep building denser ...... until equilibrium is reached. LVT's main benefit is that it helps remove zoning confusion. It makes houses, parking, offices and factories compete on comparable financial ground. And promotes a minimum level of upzoning based on the value of the land. (Usually corresponding to demand for said land)