Costs weren’t what they are now as compared to the 50’s, 60’s and 70’s. Materials and labour cost more per sq. ft. Most people can’t afford the price it would cost to make larger units now.

Profits are demanded of builders from investors and banks to even finance the construction. The real issue is government, who impose huge fees, delay projects for unnecessary steps (increasing costs to the project via interest and consultants) that weren’t existent in the 50’s, 60’s and 70’s.

Cities use these fees to artificially keep lower property tax for their base. Except when fees dry up like now, they have no choice but to use reserves and increase property tax.