Has it been demonstrated that if housing supply is less restricted, developers will want to build more? Is it always profitable for them to do so? I would think

Has it been demonstrated that if housing supply is less restricted, developers will want to build more? Is it always profitable for them to do so? I would think this is more complex, in that even if there were opportunities to build residences, it may not make sense to do so for a developer or property owner unless there were significant financial incentives to do so. I mean if I told you, "hey build apartments. Hopefully that means all the rents will go down." -- isn't that actually a disincentive to build, as not as much $$$ could be made after costs of development?