So how exactly does the government design that?

I saw the same thing in Italy when I lived there in the 90s - any kind of real estate was much more expensive than it seemed like anyone would be able to afford.

Never did figure it out - in the US, the public policy issue with homeownership is making mortgages easier or harder to get. If they're easy, then prices go up but more people own something. If they're hard, then prices go down (because no one bids them up) but fewer people own. I can't figure out a policy that leads to high prices and low rates of ownership.