You could say it is a supply and demand question in a very limited sense. Limited by space. There is no shortage of buildable areas in general, for example, around the cities, but there is shortage of housing in central and attractive places. Releasing building regulations would simply ruin existing quality and turn everything into terrible dense and faceless outskirts we all know. Then the demand would shift elsewhere, to remaining fewer good places, making demand even harsher.

Home ownership is essential for identity of places, so the solution is exactly the opposite: regulate building and secure rights to own your home.