[kspaans]

One thing you still need to consider is infrastructure like water, sewer, schools, hospitals, etc. I agree it should be easier (and thus cheaper) for landowners to build what's profitable, but there needs to be a feedback mechanism so that the things necessary for people (apart from housing) is available for them.

[alexanderwept]

Yes, every perspective renter/buyer should consider that and choose what works for them.

That feedback mechanism is called a market and it coordinates via price signals and a desire to achieve equilibrium.