If the state is controlled by unsavory people, then you probably have bigger issues at hand than them controlling the housing.

If the government is extremely authoritarian where being a political dissident puts you at risk of persecution, then you wouldn’t be able to stay at your home regardless. If the government is extremely corrupt and hand out the best apartments to their inner circle while leaving everything else to others, then it would still be an improvement to the current system, at least in my eyes.

Point is, there are far more effective ways to mess with people you don’t like if you’re a state controlled by unsavory people. That being said, a country has an interest in having a population as without it, there’s no country, no production of food and other things - going full evil and just committing genocide or mass homelessness would not make any sense.

Meanwhile, the interest of private land/property owners who hoard/acquire land/property with the intent to either rent or sell is to make as much money as possible, they don’t particularly care if it gives someone in need a roof over the head as long as they’re making money.

Also, with the housing crises around the whole world, the amount of vacant houses that would alleviate or outright solve those crises, and many types of fraud going around the world when it comes to building new housing, it’s safe to say that the current housing system is controlled by unsavory individuals. In the real world, not in a hypothetical scenario.

Apologies for the long reply.