The link below compares median home prices to the median income on a state by state basis. In a slight majority of states mortgage payments remain well below the recommended guideline of 28% of income that has been around for decades. If you look at the country "geographically" the majority of the country by far fits within the 28% guideline.

https://www.fool.com/the-ascent/research/average-house-price-state/

In other words, sky high housing prices are a "local problem" not a "national" problem.

And the real problem is not "high land" prices. Nor a shortage of workers. Those issues can be overcome and are largely noise.

City Planning and Permits

Where you are correct is zoning laws prevent adequate supplies of housing being built especially in areas with high housing prices. Without the zoning laws, investors would find a way a way to build affordable housing.

We live in Orange County, California and I explored building "tiny home" communities targeted to entry level low wage workers as I figured it could be both profitable to provide affordable housing to young people starting out their careers and fill a "need".

Forget getting a permit unless you are part of a city sponsored affordable housing initiative. Most cities want to control their "affordable housing" for various reasons.

Where you make a "partial point" is that higher land prices means that in order for a builder to profit, they need to build either expensive homes or high density multi-family housing (apartments or condos).

Either way, afforable housing requires higher density housing even when compared to your single story condo skyscrapers.

Don't blame the developers, they are being guided by the economics and the city planning departments and trying to find a niche that works. In many instances, that is "high value" housing. If city permitting and planners were less restrictive you would see a boom in affordable housing construction.