Yet it isn't working in most european cities. Price increases and capital holders always build behind the offer/demand curve so they get a better yield from it. Also, rent is always high enough to milk as much as possible from modal income, as demand is pretty inelastic.
Also, read carefully, I don't want price control directly onto the private sector but the adminsitration controlling a big chunk of the offer.
It doesn't work like that, because not all property nor customer is even. A luxury apartment is not competing with a 2 bedroom public housing apartment. And there will be floating population, there will people moving in, there will be people with special needs that public housing doesn't cover, etc etc
Maybe such situation would actually push investors to be innovative with housing for once. If regulations allow that, of course, which is important too.
Also, read carefully, I don't want price control directly onto the private sector but the adminsitration controlling a big chunk of the offer.