It's an infinite loop. Build more housing to suck in more jobs and people. Then you need even more housing since people from now-depleted surroundings come in.

It's an infinite loop. Build more housing to suck in more jobs and people. Then you need even more housing since people from now-depleted surroundings come in. Rinse and repeat. It's not capitalism or statism. It's lack of safeguards to prevent concentrating too many people and economy into too tiny pieces of land.