A lot of it also has to do with a broken court system.
I now live in the Netherlands, and in the 80s, developers also started to pull this shit. Soon the lawsuits came, and very quickly they learned not to do this.
Most Dutch people have both comprehensive house insurance _and_ legal insurance!
Developers are just like any other complex corporation. Quality is just one thing that has to be balanced. And it is a market with massive pent up demand and buyers everywhere. And customers who have very little choice after they have signed on the dotted line.