So that people make more crypto and NFTs instead of developing more housing?
So they can push up the price of crypto and NFT's instead of pushing up the price of housing. Real estate is a zero-sum game since there is a finite amount of land and it's controlled by the government. Many many people wish they could develop more housing, but they can't.
Development of land increases living space …
More lucrative apartment prices ensure more profitable development …
yes, but more profitable development does not ensure more affordable developments
It is not a zero sum game. There are just finite resources, but that is nothing unusual. In the grand scheme of things there are finite resources in every physical system.
In most places the housing bottleneck has nothing to do with house prices, it's planning and consent restrictions, and a lack of skilled labour availability.