Comment by thuridas

Without post WW2 taxes.

Part of the problem is that a lot of the extra wealth ends invested in the house market. This increases the cost of terrains for both old and new homes. It is also not very productive just to buy one thing to extract rents from it. ( There is value in handling the rent, building or reforming and old house).

The urban land is limited and requires government infrastructure to connect it.

Another big cost is the university.