My view is that it's a bit of a dead end.
What we've experienced in Vancouver is this: When we've allowed for additional density, the price of the unit has not gone down in conformance with the so-called law of supply and demand. What has happened is that the price of land goes up. There is currently, nationally and internationally, a push to just add a whole bunch of density as a solution to the affordability problem.
I will again emphasize that it's counterproductive, because what it does is increase land value, to the detriment of rental affordability and first-time homebuyers.