I thought it was funny. And sad.

The incentives you're talking about -- they're missing because of NIMBYist overregulation. The whole point of NIMBYism is to use regulation to hamstring the positive incentives in the market. "There's demand for twenty units here but the place is zoned for a single unit." or "There's demand for twenty units but the city demands that if we build a multitenant unit, we have to do a twenty-year environmental survey first".

Do you live in a place with a homeless crisis. Guess what: You're a citizen and you have some agency. Democracy can be a backstop to "pure" (or mis-regulated) market forces. I, for one, enjoy clean drinking water (and also: a good deal from a healthy competitive market).