It's a bad sign. It's a sign the gov has dropped the ball. Government should be doing this. This is their job, it's in their purview to account for growth and address it, one way or another, but not ignore it or frustrate it.
Perhaps not an opinion shared by everyone, but even Khrushchyovkas would be better than a housing crisis. Affordable housing is a basic need. Building these in scale would lead to a lot of other problems, but if a city is otherwise incapable to accommodate people, then the city gets those other problems.
