Why wouldn't the savings/costs be passed along to the consumer as in every other segment of the market?

If I am a strawberry seller and my cost to buy strawberries goes down, I can pass those savings onto the consumer or not. But my competitors will all be making the same choice, so absent collusion, if I don't lower my prices, but my competitors do, then obviously they'll take my business.

In other words, profit margins are determined by how competitive a market is, not the cost of production.

If this change goes through, I imagine that profit margins for LA developers will remain similar to whatever they are now.