Good for housing investors though (sarcasm).
But yea, it is very easy for the government to "improve" economic situation by increasing the house prices.
First of all, we build less = less money spent on the new infrastructure, profit.
And if the prices go up, everyone who has a house gets more wealthy (except they cannot sell that, because they would become homeless).
Also, makes banking very stable, if everyone knows mortgages are "very nice investment".