Is anyone in this thread proposing this kind of system? This is kind of an insane strawman.
You can have a regulated market that still has prices. OP only proposed incentives to build and disincentives to hoard. Homes would still have prices, there would just be less scarcity.
OP is claiming that housing is a commodity. If treated as a commodity, all houses would be priced the same. Then the reality sets in and you have to deal with the fact that some houses are more desirable than others, so you need to distribute them somehow without changing the price.
You can have a regulated market that still has prices. OP only proposed incentives to build and disincentives to hoard. Homes would still have prices, there would just be less scarcity.