you need to do both but I think it's better for the smaller homes thing to come second because that has lots of negative outcomes if you implement that when the

you need to do both but I think it's better for the smaller homes thing to come second because that has lots of negative outcomes if you implement that when there is a shortage (i.e. you supply a lot of tiny units that noone will want once supply and demand come back into balance from higher density and then you end up spending a lot of unnecessary resources demolishing/rebuiling/combining). My bigger concern around this higher density is uneven reconfiguration of the transportation corridors to accommodate more walking/cycling/non stupid transit (i.e. subway/lrt/trams and other forms that aren't sharing the road and therefore getting stuck in the car congestion). If you build much higher density and still expect everyone to get around by car, that's a disaster in itself.