He supports my right use the house I purchased (next door to his) in any way I see fit.
So, If I have 8 families living in a single family home, there may be some sanitation and parking problems.
It stands to reason there are probably many more people who want to move in to the area, but who aren't willing to be one of 8 families in a single family home.
So given the huge amount of pent-up demand, there must be some building laws in place keeping this specific city from growing upwards, and generating supply for this demand.
This is probably a building limits problem.