As I explained in my other comment, new development will make overall rents cheaper than what they would’ve otherwise been, regardless of if the new development is affordable, luxury, or anything in between. This article explains it in more detail.

If you suggest they should develop affordable instead of market rate housing, then that’s a fair sentiment, but even market-rate housing will be better than not building at all. If you are actually suggesting not building anything at all, well…

Also I do wonder how common the last thing you said actually is. The usual complaints I see online is about developers advertising “luxury” apartments when they’re just bog-standard 5-over-1s.