You’re assuming everything else can’t grow to absorb the demand.
In general it does - new housing, job creation, all of it.
What you’re really seeing is when something - often policy - gets in the way and a place ends up underbuilt.
It’s still a problem but it’s one with different solutions.
It can but it takes a very long time to bring food online. To develop real estate.
Especially when the real numbers of immigrants is much higher.
It takes time to train more doctors, to raise more cattle, and to build more homes. Way more than the rate of immigration over the last 30 years.
It makes rich families richer though. But it hasn’t been good for working people and the community culture the country once had.