There's a limited amount of space and a non-negligible portion of society are unable to afford market rates. When the state doesn't build accommodation, citizens end up transferring ludicrous amounts to private landlords to house foster children, asylum seekers, the poor, or the disabled.
The UK experimented with selling off it's social housing in the 70s. It was a colossal failure that has lead to the country having some of the worst housing stock in Europe, with renters paying more for less. Private landlords have been enriched at the expense of the wider society.
Without state intervention in housing regulation/supply we'd see shanty towns spring up fairly quickly, followed by violence. Refer to Champlain Towers, Grenfell Tower, or the collapsed luxury apartments in the Turkey earthquake to see what happens when the state does not do enough to ensure builders aren't building death traps.
The UK experimented with selling off it's social housing in the 70s. It was a colossal failure that has lead to the country having some of the worst housing stock in Europe, with renters paying more for less. Private landlords have been enriched at the expense of the wider society.
Without state intervention in housing regulation/supply we'd see shanty towns spring up fairly quickly, followed by violence. Refer to Champlain Towers, Grenfell Tower, or the collapsed luxury apartments in the Turkey earthquake to see what happens when the state does not do enough to ensure builders aren't building death traps.