I think you have a mistaken view of who is actually making money in this equation. Developers do not make all that much money from building housing, which is actually a productive contribution to society. Homeowners, on the other hand, make hand over fist by simply sitting on land absorbing rents:
https://pbs.twimg.com/media/EyJN_g3UUAIW0f0?format=jpg&name=...
The top five developers in my area have seen their market value rise over 30% in the last five years. Most of the development in my area is one of the top five. I’d like a better source for saying developers aren’t making money in big markets where land value goes up quickly.