Chicago, Detroit, and NYC all tried that and abandoned it due to cost overruns, corruption, high liabilities, and the limiting of eminent domain powers following the civil rights movement - most urban housing projects were built by demolishing historically African American neighborhoods, and the resulting structures were segregated (as James Baldwin eloquently pointed out in 1963 during the height of the civil rights movement)
The same thing happened in Western Europe as well with France and the UK abandoning similar urban housing projects.
Singapore and HK are unique in that the governments are authoritarian and can kick people out with minimal notice or recourse if they really want to.
The biggest blocker is always going to be land acquisition - either we reject the entire notion that you have property rights and the right to recourse, or you accept that these basic civil liberties are a requirement for a democracy and thus building will have to be done by the private sector because unlocking public funds would take 3-5 years on top of 2-3 years of construction.
For a more recent example, look at China's urban renewal projects in the 2000s and 2010s, and how local governments would use forced evictions as well as minimal compensation and occasionally shooting protesters [0][1][2] or the mass evictions in Beijing in 2017-18 [3] - this was how Housing Projects were built across America from the 1930s-1960s.
Opposition to that policy was also a major reason why Xi Jinping was initially quite popular, because he was opposed to these kinds of projects at scale, and Fujian never saw the kind of mass demolitions that you'd see in other Chinese provinces.
[0] - https://www.washingtonpost.com/wp-dyn/articles/A6968-2004Oct...
[1] - http://news.bbc.co.uk/2/hi/asia-pacific/4507130.stm
[2] - https://www.reuters.com/article/olympics-evictions-idUSPEK57...
[3] - https://www.nytimes.com/2017/11/30/world/asia/china-beijing-...