I think you literally proved his point. It’s because capitalism that developers only build profitable properties. They will not build anything that devalues their own portfolio. That’s just capitalism for you.
Why aren’t you and GP out there building houses for a loss? None of the people complaining about capitalism ever actually practice their own ideals.
Anyone is free to start a non-profit org that builds homes and you can still cut yourself + employees a salary.
It is just that enlisting everything and everyone on the planet into a pure financial model that can be leveraged for rents and speculaion is what it is about.