But that would just make it somewhat more expensive to build. The problem is that the supply is always kept insufficient. If, for example, the government would build good quality housing according to need, the housing market would implode. To build according to need was the default in here in Sweden before ~1990.
Making it more expensive translates to a lack of supply - the government has far more limited resources than huge real estate development firms. The pipes thing is just an example. Of course, this is one of a great many factors that make it nigh-impossible to get affordable government housing built. Not the least of which is the actual expense of land vs. cash-strapped local governments (who are broke because our tax system sucks and we spend what little money we do have on subsidies for businesses.)
It's a systemic issue - the incentives that we have lead to a governmental inability to function at all levels. Pick any random piece and you can find a reason that it's hard to do meaningful work.
Sorry but to imagine that labour costs and unions are somehow responsible for the housing shortage is just a strange distraction. We had labour unions in Sweden with good working conditions & benefits etc etc all along that period. The goal to inflate the price of housing is the main issue.
You're absolutely right - that is the main issue. I'm not suggesting for a moment that fixing labor union litigation would fix housing. It wouldn't.
I was using the pipes as an accessible example of what is a single piece of a very, very large mosaic.
The assertion I intended to make was precisely this: That it is impossible to point to a single bad actor (although, you are likely correct in pointing out the most egregious of them). The core issue (IMO, the thing to fix) is that the system of incentives that surrounds the developers, contractors, politicians, homeowners, and everyone else involved rewards slicing the pie over making more pie. Adding value, when it's easier to litigate your way into aquiring a larger share of existing value, is pointless from any individual's standpoint.
Take a look at the debacle that surrounded the Stuyvesant Town housing projects - this is a case where this sort of pie-slicing quite nearly made it through, but was struck down by the courts. I use this example because due to it's failure the techniques involved are clearly visible: