If taxes were raised 1% certain income brackets, how much income could be generation to build some nice apartments, as government housing, made affordable for those having the need, ability and desire to participate.
If costs are too high for housing, which is even relative to income, then a government being responsible for their "sons and daughters" has to find the most cost effective measures to take, even if it means government housing. There may always be stipulations and rules to participate. Those can be made to ensure a positive future.
It's always interesting to look at countries in the world and see which laws you can find that would closest represent your ideas of righteousness. You can look at countries ranging from Swaziland, China, the Islamic Republic of Iran to communities like Ramla, Israel, to Mea Sharim to Tokyo, Japan, to Amman (Philadelphia), Jordan.
Jewish Scripture is filled with legal precedences and to see which one's Israel adheres to will be the determining factor. It's in Deuteronomy.
We pray Israelis and Palestinians do their best to make all the good prophesies happen.