Someone in authority actually said this: DC council member on expanded townhouses

On the subject of "pop-ups," townhouses that have been renovated to tower over their neighbors, The Washington Post quotes D.C. council member Jim Graham:

“Supporters of pop-ups — other­wise intelligent people — talk about the need for Washington to respond to the great housing demand. That’s patently absurd,” Graham said. “This is about profit. It’s about the historic streetscape in the city. And it’s about, when will it end?”

What's patently absurd is the apparent disconnect between profits and the need to respond to housing demand. Market economies, how do they work?