Can the market 100% solve all housing problems? No, probably not. Can the market solve A LOT more housing problems than it currently is? Yes, absolutely. The market is hugely constrained by government enforced zoning in a huge number of places right now. It's the primary housing issue of our time.
The entire state of California now has a housing crisis with > 30% of residents spending more than a third of their income on housing.
Some estimates indicate that the US as a whole has underbuilt by around 5M units of housing. There are quite a few causes to this, but exclusionary zoning is definitely one of them.
https://www.google.com/amp/s/amp.theguardian.com/cities/2015...
It certainly seems like voters are prioritizing things besides affordable housing and getting what they want (expensive rent and nice parks).
It is not necessary to usurp famous city landmarks to offer affordable housing. Berlin is large and underdeveloped.