Interest rate spikes killed a lot of projects, and municipal stonewalling keeps the developers riding a pretty thin edge of profitability. These are for-profit businesses, of course when the loan repayments are going to eliminate all profit, they're going to back off on their plans.

Imagine you're planning a building - you design a massively profitable but huge building, but then years of bickering with city hall shrinks the building and raises your carrying costs until it's just a modest win. Still fine. You get the permits and then interest rates jump. Now if you go forwards, the project will be deep in the red. The city won't let you go back to your original huge form of the project without another multi-year fight.

If you sit on it until interest rates go down again, you're not building. If you get started on a new application for a more profitable building, you're not building.

You don't have to listen to the dead-eyed mobbed-up reptiles of the for-profit housing industry to see this, listen to progressive affordable housing builders like Jen Keesmaat or Housing Now TO and they'll tell you the same thing.