[lprubin]

If you compensate the developers' losses in revenue with tax breaks, how does it shrink the supply?

[kiba]

If it doesn't encourage developers to build more houses, then it does nothing.

We care more about the number of people housed, not merely just people who are housed who can afford their bills.

[lprubin]

The original question was "How do you get teachers, garbage collectors, plumbers, nurses, all sorts of manual workers ?" Those people all have some amount of money they can afford to pay their bills. Since a city needs some percentage of those workers, having housing they can afford is a big step towards attracting them.