> (...) there should be heavy state intervention (...)
This has been tried so many times throughout different cultures and time periods, and by different means. It will not benefit whoever is actually living on the properties, but will detract from their situation.
Economics in One Lesson by Henry Hazlitt has several concrete examples of attempted interventions, and is written to give a basic intuition on why this happens (Spoiler: Opportunity costs).
The only permanent solution is just to build more buildings, or at a political level simply making it easier to build new buildings, which directly increases supply and thus causes the lowering of prices. This makes perfect sense when you think about it: There are not enough buildings, so we need to have more buildings.
It continues to be disappointing to see so many people turn to state power as a solution to the problem of scarcity. Scarcity is solved through production not political power.
Land Value Tax would decrease the cost of land as it makes land speculation less attractive. People won't be willing to bet on much on real estate if increased prices come with a tax penalty.
It's not without its flaws, but Singapore has an extremely effective public housing program run by the government's Housing & Development Board (HDB) where 89.9% of Singaporeans are homeowners.
The "just build more" supply argument doesn't hold water when you have an unlimited source of demand from institutional investors and speculators that use housing as a place to park their money.
It sounds like incentives in Manhattan are stacked in a way that 1000ft tall buildings with only 40 uber-luxury units are the only kind of buildings that can be profitably built.
This has been tried so many times throughout different cultures and time periods, and by different means. It will not benefit whoever is actually living on the properties, but will detract from their situation.
Economics in One Lesson by Henry Hazlitt has several concrete examples of attempted interventions, and is written to give a basic intuition on why this happens (Spoiler: Opportunity costs).
The only permanent solution is just to build more buildings, or at a political level simply making it easier to build new buildings, which directly increases supply and thus causes the lowering of prices. This makes perfect sense when you think about it: There are not enough buildings, so we need to have more buildings.