> The "poor" people are extremely poor to the point that you cannot comprehend.
There are people living 12 to a room on the first floor of my apartment block, probably 24 to an apartment. In Shanghai good construction jobs have dorms on site, bad ones they sleep on the floor or on the street in summer. I have a reasonable idea of what poverty looks like in middle income countries.
> And they have to stay there and live there for their entire lives because the current system forces them to.
No, it doesn’t. It constrains their choices, all of which may be terrible but it doesn’t force them to. They’re where they are because either they or their parents moved to the city because the city was better. Making building densely illegal forces them to live far from where they work. People choose some combination of price, density and location. Removing choices rarely makes people more free.
> It is impossible for them to move out because of how unaffordable the cities are and how heavily the system is rigged against them.
If the cities are that bad why don’t they move to the country? Unskilled agricultural labour doesn’t pay much but starvation is not common in Latin America outside Venezuela.
> They have nothing. These people are already commuting long distances and already live in unregulated, unmarked ghettos.
And if planning laws made building densely illegal they’d still live there but there’d be no prospect of moving closer to where they work. Sprawl would have been legislated in place of density. The middle class would have nice places to live where there could have been housing for those less fortunate.
> The only people who "lose" here are the current land owners of legal properties. Renters will end up with lower rent because housing will rapidly devalue to a tenth of its original value - every single house will stop being the foreign investment opportunity that it currently is.
If there is demand it will be supplied or it won’t. If it’s not supplied the people who don’t get it will be those with least resources. If 100,000 people demand housing and there’s only legal housing for 50,000 the other half will go unhoused or live somewhere illegally. Restricting supply will not change this.
How can not building housing possibly help the poor? How can building less housing possibly help the poor? How can forcing people to live far from where they want to live help them?