Not really. The more densely you build where people want to live, and the less costly it is to build the more profit you can make with each sale. Demand isn't reduced by density, it is multiplied.Actually one of the reasons for California’s affordability problem is that it’s not dense at all. The more housing you build the cheaper it gets.
This does raise another good point though, that we should abolish zoning that mandates parking. It’s a huge waste of valuable land.
And the solution I offered mitigates against buying cars and having parking as an issue. If you eliminate parking without high speed transit, you increase the nightmare of commute times and the fuel costs that go with them. Also, in California housing density which means high rise might be a solution good only to the next Richter 9.