They are primarily designed to help the builder gain cash for construction and to help them offset expenses later. 

Plus, some builders are putting their projects on hold because of the sudden tripling of lumber prices and shortage of skilled workers, which could delay the construction boom this country so badly needs.

Not every builder knows every rule in every area.

Bought the property from the builder at year 2013 and now have a great equity on it.

Used houses in my areas NC and FL are selling for above cost and many builders are not allowing investors into their new home communities in the Tampa area.

If the numbers actually work, I think a builder would have already jumped on a property like that, so there may be more than meets the eye.

Are you seeing builders massively outperforming the national trend of under-building?    

We always advise new investors to buy brand new builds, directly from the builder if possible.

I think right now is a terrifying time for all but the most aggressive builders. 

Go get insurance asap even if it’s a low limits builders risk policy based off of the renovations you plan to do once it is vacant, or a surplus lines commercial policy.