[avmich]

How come in so many markets suppliers seek the demand and glad to have it, but in real estate market instead of cheerfully increasing the supply there are complaints, proposal to limit and in general offers to do something unusual where the goal could seemingly be achieved by more housing...

[alvah]

Because one of the greatest cons of the last ~50 years has been convincing the middle class that housing is an asset, so now the price level in most Western cities has been bid up to insane levels, and asset owners will do whatever they can to maintain the value of their "asset".

Also because real estate may resemble a market but it's very far from a free market, with lobby groups, regulations and intervention everywhere you look.

[ajsnigrutin]

Because the "investors" buy up property and then lobby their (local or national) governments not to allow more housing to be built to artificially inflate the prices.