Nobody here is mentioning that the cost to build just increased significantly with interest rates.

Builders take out loans to acquire land and line up supplies and contractors, they sell the unbuilt plots to buyers, then start construction.

It just got a lot harder to buy land and acquire resources, and the price buyers will pay has and is currently decreasing.

They're seeing higher costs and lower profits, that's not something their investors will want to pour money into, which reduces their liquidity and ability to build even further.

The clear solution to builders is to limit potential losses by reducing new expenditures until the macro environment stabilizes.