Why would you produce more bread, milk, eggs as prices fall? You would of course wait for the next-pig cycle - when the starving masses pay any price to you.
The answer- essentials can never be a non-government interferring market. This can be by creating artifical oversupply by buying up oversupply for foreign aid or bio fuels(food production). In the case of housing, this is by having the goverment continually construct housing.
One of the main housing issues is government interference. People want to do things to get money from other people, including building houses for them to buy.
Sure, which is a different intervention than what's being discussed here.