Yes, but you have to go deeper. Why is nooone willing to increase the level of supply unless they can make a lot of money and so optimizing for luxury housing?

Yes, but you have to go deeper. Why is nooone willing to increase the level of supply unless they can make a lot of money and so optimizing for luxury housing? Because housing is expensive to build. Why is housing expensive to build? Because there is a lot of red tape and regulations. Why is there a lot of red tape and regulations? Because of existing home owners lobbying for it to resist the increase of supply. Why are NIMBYs fighting more housing? Because more housing decreases their own house prices and investment. Why are people so preoccupied with their house prices - is it greed? No, because for an entire generation of people, their house price is the only retirement investment they can rely on. Why? Because the social safety net in North America has eroded and if you disrupt the housing supply you're just going to have a different problem of a retiring generation that we cannot take care of.