Well if we make building an already solidly profitable lot half a percent more profitable then suddenly all the developers will start selling units for far under market rate, obviously. It’s not like developers will continue to sit on land instead of risking completely supplying the market and thus causing unit prices and profit margins to fall, after all they can now add another closet to each floor instead of an interwoven staircase./s
But outsourcing them to an collection of independent bureaucracies(companies) is so much more ‘efficient’ than one bureaucracy just building what it needs to.
Besides, the government owning and developing housing would just be a huge cost to the taxpayers given how unprofitable it is to own or sell real-estate. Why the government might even build enough to actually house all the people waiting on public housing and then rent out the surplus out at below market rates but above cost in order to help fund the service, and that sounds like it could cut into the profit margins of the poor landlords.
Nope, far better to make a deal where the government assumes the risk for the project if a project fails, and the corporations get to take all the extra profit if a project succeeds./s