Inability of third party to capture value they create - an apartment complex in the middle of the forest is worthless.

It needs utilities, shopping centre, major metro line, highway, arts, jobs, good schools, and general 'nice area' vibes created by artists on the verge of bankruptcy. None of those things area created by the construction company.

In fact randomly building houses leads to congestion, lack of places in schools and other facilities, and miserable living conditions.