I liked all your reporting except your conclusion. You conclude developers don’t want to knock prices in half. Duh. But that doesn’t mean they only want to grow at the rate they are now. There have been artificial roadblocks for housing development. I’m sure they’ve done their charts too, maybe if they double their development but rent only goes down 15% then their profits massively increase. Everybody wins in that scenario.
You could sustain that kind of development, or let it go as fast as it wants until saturation occurs and things level off a while. Would be a hell of a lot cheaper housing overall if the bottom were saturation and the top was chasing max profits, rather than a steady sort of jogging behind with perpetually increasing rent costs.