That's what we've been doing here in Australia to deal with a housing crisis; now there's a looming oversupply of apartments [1], and a lot of them are barely habitable "dog boxes" [2][3] built as investment assets (rather than, you know, for living in) while house prices are still sky high.
[1] http://www.domain.com.au/news/australia-to-have-too-many-hom...
[2] http://www.abc.net.au/news/2016-08-14/melbourne-dog-box-apar...
[3] http://www.macrobusiness.com.au/2016/03/melbournes-dog-boxes...