The lack of capacity to build in Europe is due to age-old regulations, bureaucracy and very low risk appetite. All this has affected human competence as well, similar to caged animals losing their abilities.
And don’t forget the bigger picture. Businesses are jobs. When a country makes it so hostile for business that most can’t even operate there, that’s wages and tax revenue lost.
The above is how Poland ends up with average apartments 8x the average wage.
I don’t even want to get into the issues with prioritizing cars above people. That’s a whole other topic outside of this.