Cronyism runs rampant. Those fortunate enough to own a home in an attractive area often lobby for zoning laws and regulation that limit new construction. They fear that an increase in the supply would dampen the price appreciation of existing homes, and perhaps make the neighborhood less attractive. (Under capitalism, people can create voluntary covenants to control building in their immediate neighborhoods, but they cannot use government force to restrict housing more broadly.) And often people who live in a rent-controlled apartment oppose initiatives to remove the welfare-statist rent-control regulations that would make housing more available for others.
Think Right or Wrong, Not Left or Right 