The missing bit is that that first dense housing signals unmet demand. The real keys are:

1. is to keep on going with the dense housing to saturate.

2. a city council that insists on below-market-rate housing be included with the development

3. layer cake development: bottom floor is retail, middle is office, top floors are apartments/hotels + below market rate

This prevents developers from cherry-picking the highest demand usage for their building at the expense of the total needs of the community.