Any new housing is good, even if it's luxury; when people move into luxury apartments, it relieves demand on wherever they were living before, lowering prices.
This. If we refuse to build luxury housing, people who could afford it will just outbid everyone on whatever we do build, because they need to live somewhere. And it may look like they're springing up everywhere but we're barely treading water, the absolute numbers still aren't keeping up with influx.