New York City does not have much available housing and this leads to problems:

You can see it by looking at residential-vacancy rates, which have been as low as 2 percent in recent years. You can tell by looking at the size and price of rentals and homes for purchase: The average rent in Manhattan is more than $4,000, and the average home in Brooklyn costs roughly $1 million. You can see it in the shrinking of New York’s middle class and the stagnation of its population and the widening of its income and wealth inequality. Housing supply has simply not kept pace with housing demand, squeezing everyone except for the very rich.
The same forces shunting families to the suburbs are weighing on the migrants. The same forces driving New Yorkers out of unaffordable apartments and into homeless shelters are weighing on the migrants. Migrants cannot afford housing for the same reason that the city itself struggles to raise money for new facilities. New York really is full…
High housing costs have a way of making every problem a housing problem. A homeless person needing help with a substance-abuse disorder needs housing first. A migrant requiring legal aid more pressingly needs a roof over their head. And high housing costs, of course, force millions of vulnerable people into homelessness. “Our homeless-response system has turned into a crisis-response system,” Gregg Colburn, an associate real-estate professor at the University of Washington’s College of Built Environments, told me. “So many other systems have failed or delegated responsibility to it.”
The opposite is also true: Low housing costs make other problems simpler to solve. Cheap housing reduces the number of people who become homeless. It also allows the entities providing assistance to do more for less, because their overhead costs are lower. And it frees up lawyers to work on immigration cases, substance-use experts to work on substance-use issues, and mental-health counselors to work on mental-health issues.
It is enough to make one think that seriously and sufficiently addressing housing should be a major priority!
The problem is not just limited to New York City. Multiple big cities in the United States need more housing units and lower-priced yet good quality housing. Having a stable place to live at a reasonable price goes a long way to better life outcomes and opportunities.
But, adding a lot of good housing takes a lot of work and there does not seem to be political will to address it. Additionally, it can be easy to look for other solutions to some of the different problems listed above. Would building more good housing automatically solve these issues? No, but it could help a lot and make it more possible for people to live and enjoy major cities.