The problem is that there's no economic incentive to solve that shortage. Numbers just don't add up. Existing city residents wouldn't be that happy if their mu

The problem is that there's no economic incentive to solve that shortage. Numbers just don't add up. Existing city residents wouldn't be that happy if their municipality started building shitload of public buildings using their tax money. Those money would be redirected from other issues that are important to current inhabitants, their real estate value would plummet and they get much densier city that comes with all the associated problems. On top of that, cheap rents would make the city more interesting for more people. So rents would start raising again and we're at step #1... But with more crowded public services.