The Endless Peaks had limited space but cultivators were long term planners. If there was not enough space for their plans, they would make what they needed.
The most common solution was to maximize space on the slopes by inverting space with formations on every structure. Thus, a single tower could be equivalent to a town on the inside. It was simple but resource intensive.
Inverting space was easy for a storage treasure due to its varying sizes and relatively stable nature, but a living space was very different. The folded dimension technology was not something anyone could pull off and usually only a separate set of rooms could be made.
No one knew Lind Frey had modified it to make his Clan's headquarters.
Still, it was the most common due to being well understood. It was not the only solution.