New housing is subject to cost disease. Now exacerbated because the off the books workers the industry depends on are being kicked out. You can't just materialize houses without the labor to make them.
Then reduce minimum costs. Let 50 people share an empty lot and put up a slum made of wooden planks from the hardware store. They won't allow this because it'd make house prices decrease.
That plus a history of people dying from building things not to code and trying to live in it, plus the externalized costs of having to put out the ensuing fire due to a non-electrician wiring the thing.
I.e. exactly what we should be doing with housing.