In our current, over-regulated market: yes absolutely. In a healthy market, cost of low-end housing should approach the cost of labor + raw material (plus necessary overhead for e.g. inspections, plus a reasonable risk-adjusted return on construction). Cost of materials/labor simply slides/scales with additional stories / more difficult terrain.
Land/space, while not an infinite resource, is hardly limited on the scale necessary to house people outside of extremely small niches. Views of central park are always going to be expensive, but there are a lot of square miles <45minutes to times square where someone would very profitably build and run (e.g.) an SRO if they were allowed to.
Also in healthy market bottom end should be housing build decades ago and already fully paid for. Now it would mean large mid-rises. But still, entirely reasonable standard of living when you are not been brainwashed into needing expensive wasteful single family buildings.
Land/space, while not an infinite resource, is hardly limited on the scale necessary to house people outside of extremely small niches. Views of central park are always going to be expensive, but there are a lot of square miles <45minutes to times square where someone would very profitably build and run (e.g.) an SRO if they were allowed to.