Supply and demand for labor will work itself out- prices will go up, companies will invest in efficiency, etc. People just need time to figure out the details, and the legal right to do the job.
Indeed, that's my thesis, I appreciate you making it crystal clear. The pipeline has failed, and if there is a will to fix it, it will take time. Until it's sorted, year after year, there will be folks who go without affordable housing. There are, as you said, going to be losers from this policy failure.