New housing always goes to those who can afford it. If you're severely restricted on how, what, and where you can build that pushes new housing construction up the income ladder. It's why we can't just build, for good or ill, something like favelas here in this US. It's why when we push for new housing supply it *must* include some sort of affordability component or government provided/subsidized development or the people at the bottom get completely left out for the middle class and higher income people. Yes, eventually rents and housing prices may come down to a level that lower income folks may be able to afford but that takes time