I can only speak of my observations growing up here in new york. At the end of WWII thousands of GI's returned to a city that over a four year period learned to live without them. Starting new families were put on hold as were careers and there was an instant scramble to get things going again. This four year backlog of folks looking to start their own families put a strain on the housing market. Who takes over? Your friends at the government and entrepeneurs. Army barracks were converted to small housing units, and the govt erected multi dwellings all over the place. The concept was you lived in a low rent building until you got back on your feet and bought your own house and moved out. Well a lot of folks got used to the teat and didn't move. The empty apartments were filled with "low income" folks. Not to pass up an opportunity the democraps catered to these folks and even paid to relocate new "low income" folks from other states necessitating the construction of more "low income" housing. This was the birth of "the projects".
If the govt. left the housing market to Fred Trump, the Le Fraks, Levitt, Waxman, and a few others all of this may not have happened but when the govt takes the place of family and private enterprise you're pretty screwed