Key takeaway is at end of this article [gift link].
Sales of new exurban houses are falling, but there's unmet demand for urban infill. If cities & inner suburbs repeal offstreet parking mandates & cut minimum lot sizes, builders will keep building.
https://www.nytimes.com/2025/08/25/business/housing-market-builders-demand.html?unlocked_article_code=1.hk8.QJVW.-vaetwO_mMSv&smid=url-share
As Housing Demand Continues to Fall, Builders Get Creative

A slow start to the home building market this year has prompted some builders to increase incentives and build on smaller lots.

The New York Times