If you have an item to sell and if people are willing to pay for it more than the price, if you do not increase the price someone buys it cheap and simply sells

If you have an item to sell and if people are willing to pay for it more than the price, if you do not increase the price someone buys it cheap and simply sells it to the highest bidder making a profit. This is a bit like low cost government subsidized housing in bay area. Joe gets it but then rents to Kumar and continue to live as homeless. Now you have subsidized Kumar. It is dangerous in a sense, it assigns virtue to bad economic sense, creates incentives for needless middleman and prevents goods from going to people who really need it.