"Buying an entire development" is arguably anticompetitive behavior and can be prevented by the government.
My city's housing development department is run by the Chairman's (our version of a Mayor) nephew, the husband of a previous member, an owner of the largest property management company in the county, and an owner of a landscaping business. I attempted to join the housing development department but the positions are specifically appointed by the "Mayor". Our "Mayor" is also not elected via public voting, since they are a Chairman they have to be removed by the Board, and the Chairman has held this role since 1975.
Ultimately, until this Chairman passes or is (somehow) removed from their role, there is nothing that anyone in our city can do to rectify this. And I believe this is a common problem across many cities outside of Metro areas (where the housing supply issue is more apparent).
It's a terrible local government, but right now I'm not in a position to move anywhere else without ending up driving 3hrs a day to go to work and paying way more than I can afford.