We want businesses and entrepreneurs to try new things with real estate, just like any market. I strongly believe that our physical spaces can get better/cheaper, but only if you allow investment and risk taking.
The main issue at the root of the OPs concerns is that as a society we have attempted to make real estate ON AVERAGE a good investment, which by definition means increase faster than inflation. There are demand side subsidies for home ownership, but many supply side issues as well. For example free parking and minimum parking requirements and max height restrictions. Many others have pointed these out. If we as a society tried to increase entrepreneurship in real estate by opening up more options, we could see a flourishing of options for people, with more range than ever, including lower cost options.