Fundamentally, housing should not be a free market area that is profit-driven. Housing, like energy, food, healthcare and public transport is a basic need.
Therefore, government policies making sure people with lower income can still get housing in a city they grew up in, where they work, live and have family, is important.
Yes, one part of this is also building new housing and making sure that housing is built efficiently in terms of cost (but not throwing them on the free market, but making sure a certain % of it is desginated as social housing).