A legitimate mystery, i.e. one that I can’t explain is: “why wouldn’t a developer be able to make just as much money putting more, smaller, cheaper units in a given building than fewer, larger, more expensive ones.
All the new construction is for “luxury” condos, which of course means they can mark up the fixtures and the granite countertops etc, but what about just a bare bones 700 sq ft 2 bedroom with a galley kitchen and you can put twice as many of them per floor?
“mystery”
Location.
A luxury unit will only get the luxury price if the location is right. You don’t have free access to all lots because most are already owned by someone else.
For vehicles, you can compose your fleet accordingly for cheap/expensive volumes. Not so for housing because location is fixed and beyond your control.