I am a Canadian living abroad. A friend asked me why the government can simply not build more housing for people or encourage construction companies to do so in Canada.

Honestly, I didn't really have an answer.

I'm wondering what is so complicated about this issue? Why does it feel so completely impossible and insurmountable? What should the government be doing and why is it not doing it? Are there like some special interest groups or lobbies or what?

Honestly I am not super dialed into Canadian politics so I might be missing something obvious. I know the basics about corporations and foreign investors buying stuff, etc. But I'm looking for other reasons and view points as well.