Since there is low inventory, doesn't development make sense?

[Gary Erdoglyan]

If there isn't a lot of inventory than Why don't investors, especially in the Los Angeles area run towards developments?

Sorry if this is a dumb question.

And im too young to remember, but from what i read, doesn't this look like the times before the big crash?! House prices are skyrocketing, and banks are slowly making it easier to borrow?  Why would we repeat the same mistake? or is it somehow different this time around?

Thanks