Almost everything you said is a typical NIMBY talking point:
Dozens of “luxury” units built cheaply, selling for 4,000$ for a 1 bedroom
A nebulous definition of "luxury", and totally ignores the fact that people with money can get what they want anyway, pushing those with less out. So yes, more "luxury" builds help.
They get subsidized by the local government for including maybe 5 units that are “low income” and probably still cost 2k
Many purportedly want more low income housing, often at absurd rates like "100% affordable" knowing that projects like that will never pencil out. It's a way of saying "No" without actually saying it.
I want lots of high quality, dignified housing for myself and my community, not wealth extraction pods.
Okay, so build some? If you can't build what you want then why stop others from building what they can with the budget they have?
As it stands now the land is being squatted by mega corporations seeking to extract as much profit from the community as possible.
It's literally illegal in most places to build more densely due to height, parking requirements, discretionary reviews, etc. impacting everyone interested in building more units (Like for a multigenerational household as seen in elsewhere in the world). This is not just impacting corporations seeking to extract profit.