> In general, when new construction occurs, it's taking low density and replacing it with more like 10X density. A very tiny amount of land gets developed at once, so you need each new development opportunity to generate as much supply as possible.

Naively, you're talking about converting a one story building into a ten story building. That == a tower.

You're skeptical that higher density zoning increases land values?

> Now, let's talk about the multi-family sector. If you thought single-family homes were hot, wait till you hear about this. Land suitable for apartment development in downtown Raleigh and Durham has seen price increases of 50-100% in the last five years alone.

> And it's not just apartments. The demand for townhomes and condos has sent land values for these types of projects through the roof, with increases of 30-40% in prime locations.

https://www.timmclarke.com/resources/are-land-values-increas...

Of course we can quibble about what amount of that appreciation is caused by zoning changes, but from first principles it is obviously the case that given the same exact plot of land, the expected value of developing 10 houses on it is much higher than the expected value of developing 1 house on it, ergo a lot that allows 10 will have a higher price than that same exact lot constrained to 1 home.