Yes things like that are a problem. When you disturbe the price equilibrium you should be punished. Bottom line the government can only do so much before they make issues a lot worse than before.
When has that ever backfired?
The government, if they cared enough, can make changes overnight. Press them on that, and watch real estate prices drop and watch a massive economic boom where people more more disposable income to spend and invest. Real estate just sucks disposable income from other businesses and activities that stimulates the overall economy.