Demand for floorspace is very large, but it is not infinite. Allowing more floorspace on a given lot of land in an in a place people want to live, increases la

Demand for floorspace is very large, but it is not infinite. Allowing more floorspace on a given lot of land in an in a place people want to live, increases land value solely because the status quo mandates floorspace scarcity in those places. In a world where everyone had all the interior floorspace they could ever desire, rezoning a random vacant lot for an infinite height building would have no effect whatsoever because there would be no demand the additional floorspace. Allowing vast quantities of floorspace on every lot within city limits would surely enrich some homeowner-occupiers who own land, but only those whose land was in locations ppl actually wanted to live. Those in other locations, whose only current draw is “you aren’t allow to live/build in the place You want to be, so come here instead” would lose value.