I’m really skeptic of the over simplistic approach of “supply and demand”, as if a wildly inelastic market such as housing has much similarities as a different more elastic one. To use the point on GP, if suddenly a huge landlord decided to jack prices to 1mm a month, I would expect prices to reach a more adequate equilibrium, but not because market mechanisms, but because a lot of things are going to burn, at least politically speaking.

And I that’s also a possible answer your question, on why they are leaving money on the table. To avoid inviting political action.