
This is effectively the same as the government paying some of the cost of making houses. Meaning that if they make more houses, they get ‘paid’ by the government, by paying less taxes. They pocket the savings because that is what the government gave to incentivize them making more homes.
Lots of people buy homes as an investment, its not only large corporations that do this, and if someone bought a home expecting that when they sell it they will get most of their money back, or even a profit on it, they would really be harmed by a government guaranteeing effectively free housing for all. If you want such a world to exist, it can’t be done instantly for sure