A look at controlled housing and economy in Denmark

In 2016 this article describes interest rates and housing were controlled with no degradation of social welfare:

http://www.msn.com/en-us/money/markets/welcome-to-the-land-below-zero-wh...

It also states that interest rates were controlled since the code of Hammurabi 18th century BC

Take away: it is speculation on real estate that drives the cost of living.