I don't think I've seen a case where the local government wants to build more housing but, gosh, they're just too expensive. It's usually NIMBYism or just general disinterest in a "non-sexy" political issue.
I think the earthquake is a standalone counter-argument to not wanting proper safety standards. Of the remaining buildings, how many are to be condemned as unsafe? I'm not sure what the homelessness problem is in Turkey, but I imagine it's now far worse.