Housing is the cause of 90% of the problems in the west, and that's driven by democratic policies to restrict the supply, not by capitalism.
Yeah. Capitalism would have built a ton the types of apartments the GP is talking about if they were allowed. But, people who already have a place don't want that type of development near them.
In my ex-Soviet country you were guaranteed to get a free apartment provided by the government. Everyone I know who lived in a city got one, right up to 1991. All you needed to do was to register in a queue and wait for a few years (2-5 depending on several factors like family status — single moms were prioritized, for example). Now we're complaining that "not everyone" can buy an apartment (forget a house), just like you. Not just "not everyone", it's out of reach for most people, and things keep getting worse. At least we have jeans and burgers instead, I guess.