> This company is also beholden to its customers, they have to compete with other companies and individuals and can only profit if they are really good at what they do. If it is extremely profitable many others will jump on the opportunity, thus lowering prices.

Will the companies compete to lower their prices to their cost level? That is, to have 0% profit by default? I don't think so. But housing should absolutely bear 0% profit by default. Governments can subsidize housing to below cost (allowing some profit to be made) but the default should always be selling the housing at-cost. The ability to make a profit from this is the crux of the problem. That introduces all sorts of negatives into the equation.

> And no, a government is almost never beholden to it’s people.

Maybe not, but it is more beholden to its people than a corporation is. A corporation doesn't even have 'its people'.