And that appears to be what’s happening. Commercial landlords apparently are still waiting, hence the empty storefronts, but it seems the residential landlords have finally realized the market needs to correct.
It needs a long correction.
High vacancy symptoms can be caused by suppliers seeking higher surplus than the market will offer, it can also be caused by artificial price floors caused by free-market perversions. E.g. factor in all state-mandated costs contributing to a price floor: no one is going to rent a property for less than its property taxes etc.
If you own it already, not renting it doesn't save you from paying property taxes and renting it even at a lower rate reduced your losses from ownership. The only reason you shouldn't want to do it, then, is that you think that the low rental price will depress future rental prices or create friction that will make you miss an opportunity for a higher-paying tenant, and that expected costs outweighs the present rent—but that's just as possible with rent above the property taxes; the property taxes aren't a special cutoff.