And this is the problem with Sweden; we got rid of the property tax, but we kept the capital gains tax meaning people are less incentivized to sell since the prices are rising anyway, meaning fewer houses end up on the market, meaning the prices rise.

This is one of the many contributors to this crisis; high capital gains taxes for people selling their house, no property tax for people keeping it. Add to that our tax deductions on interest rates and local government monopoly on what types of houses gets built (obviously not affordable housing projects, they pay terrible taxes compared to the nice people who would move into luxury condos) and you have a recipe for disaster. There's many, many other reasons too but those things are what the government could and should work on.