We've largely made infill development illegal, so housing needs keep getting filled by suburban and ex-urban sprawl. Not sure why this is so complicated.
Except cities without these limitation also continue to sprawl.
We should make infilling as easy as possible and incentivize it, but the argument that will stop sprawl on its own with no planning just doesn't appear to be reality. I agree it should slow sprawl if we actually get the infill, but it seems most developers would rather through up a neighborhood on the edge than infill.
Even if induced demand is a thing for housing, that's a good thing. There are many people that want to live in areas with access to a lot of jobs and amenities.
And for high demand areas, land costs are almost certainly going to be a big chunk of any construction costs, which is why you would want to use a per unit comparison that includes similar land location acquisition costs.
You were the one that was implying induced demand for housing wasn't a thing. I agree it's a good thing if it is easier for people to find a house.
You don't build SFH and High Rise apartments on the same type of land. That was my point, you can only justify truly high density properties where land prices are already quite high. That's why there are no 20 story condo builds on the edge of the metro and no SFH housing starts in downtown areas.
ETA: I know my comments are going to get twisted. I am saying how do you get people to actually build the infill in places it is currently allowed but they aren't being developed. Some places maybe per deregulation is the answer, but that doesn't appear to be the case everywhere.