[generatorguy]

Imagine you are a property developer. You borrow money to buy land and want to build as many housing units on that land as you are allowed to and sell them for as much as you can. Buying granite counter tops in bulk and selling the housing units as luxury is going to make you a lot more than trying to cater to the bottom of the market, so nobody does, unless forced.

[dodobirdlord]

Do it enough times and there will be an oversupply of such housing, pushing price down to the cost of land + construction. With no profit margin at that price developers will target higher and lower price points. The solution is always just more construction.