There is a logic to this. Private developers will not make multi-year, large capital investments in something if they think that its value is guaranteed to decrease. That should be obvious.

Government can make large, multi-year capital investments, too. They just don’t want to, because we’re two generations of civil servants and politicians that consider publicly-provided services to be heretical.

You’ll note that anything that doesn’t involve giving money to the private sector is not done, and what little fully public institutions we still have left are a) from an earlier era, and b) so intrinsic to the cash flow of a functioning government that not even the most boot-licking Thatcherite can make a case for selling them off.

If the governments aren’t willing to do it themselves, they can just make it easier for corporations that are willing to provide non-market housing to get the property rights and loans needed to actually get this done.

As above, there is no appetite in government to do this as it would erode the ability of the wealthy to make money, and even if they did, developers would just build something expensive to maximize value.

The entire philosophy of how government delivers services would need to change, reversing course on a quarter-century of neoliberal policy.