The problem is, unless the demand side of housing is not fixed (by making rural areas actually able to support meaningful human life again) there will always be a completely disproportionate demand on urban areas.
You can have a disproportionate demand while still avoiding capital concentration and rent extraction. I don't see those two issues as the same, at all. People who can pay more will get the properties that are most in demand, but it doesn't mean they should get ALL of them and leave the others to scrap for the rest.