It seems like you're invested in missing the point, but will you accept the analogy of restaurants? A wide variety of restaurants exist in most cities across a wide spectrum of prices. It's not a given that some 5-star French restaurant is necessarily the most economical use of a storefront everywhere. It might make more sense to build a Buffalo Wild Wings. But if you can only build a limited amount of housing, much less than what is demanded, you'll only be selling to the highest bidder anyway, and since you know you can fill your whole building with your target customer type you might as well build exactly what they want because then you can charge a bit more for it.