It's because the current entrenched rules and regulations surrounding the housing markets in pretty much every western nation were written by landlords and pro

It's because the current entrenched rules and regulations surrounding the housing markets in pretty much every western nation were written by landlords and property developers and the current system, like pretty much every system in the world these days was designed to exclusively benefit the already wealthy. Governments do nothing about the "Problem" because to them its a feature rather than a bug. The system is designed to protect the wealth and power of the wealthy, rather than provide public goods like housing. I mean if anyone could build housing wherever they wanted, that would make land and house prices go down, which would mean rich people who own lots of land and lots of houses would therefore be less rich, so that will obviously never happen. Much better for the rich to stay rich and for the rest of us to be homeless according the powers that be.