You're not seeing the counterfactual. Imagine a world where this housing doesn't get built. Would prices be lower?

Also just because they're trying to get this rent now doesn't mean that they'll be able to rent it at that level. There were some similar apartments that went up near me in the city I was living a couple years ago. Units they were trying to rent for $2200-$2400 are now going for $1700. At the end of the day, prices are driven by supply and demand.