It's illegal to build at all on some plots of land. It's illegal to build apartments on most plots of land in most cities (this is called "single-family zoning" and it dominates most U.S. cities). It's illegal to build large apartment buildings on still more plots of land.
And then, yes, of course, there are some plots of land where it's legal to build one or more of the categories listed above.
The places where housing is scarce are in the former groups, by and large, not the latter, which is to say the problem where housing is scarce is indeed that it's illegal to build enough housing there. Those places don't need to incentivize development. They need to make it legal.
And then, yes, of course, there are some plots of land where it's legal to build one or more of the categories listed above.
The places where housing is scarce are in the former groups, by and large, not the latter, which is to say the problem where housing is scarce is indeed that it's illegal to build enough housing there. Those places don't need to incentivize development. They need to make it legal.