I'm impressed Berkeley went to all the trouble of designing, approving and erecting an entire dormitory without ever seeing the point - or maybe while trying not to.
Of course, how else would they feed their families and why would they put their capital at risk if there is no possible profit? The question you should be asking is "why is the regulator slowing down the housing market?" - because the profit margin would be much lower if they weren't, as more competition would be allowed to grow and it's a well-known fact that competition leads to better services for lower prices.
