From a supply and demand side, Real Estate Developers would gravitate to high value developments due to potential for making higher returns as well as the prestige in building "fancier" developments.
A glut in the supply of high value developments would lower the market price of existing lower value stock, as well. Plus, in a lot of places developers are forced to focus on "luxury" housing because their margins are hamstrung by affordable unit requirements; so instead of putting up a building that's 100% medium rate, they build something with 70% luxury units to offset the 30% affordable units.