To build housing requires massive amounts of labor. Labor is expensive. (Thus DIY is a thing to save money).
If there is no opportunity for some profit, no one is going to build housing, because that profit is also generated from work (by a general contractor or builder). It requires finding and buy land, conception, designing, permitting, inspecting, financing, sourcing, selecting architects, engineers, designers, and contractors, etc. And not to mention taking a big financial risk to borrow a loan or pay upfront for all the materials.
If you take away the potential to make profit from all that effort, then what you will end up with is that any housing will be built with very low effort. You will basically end up with complexes like old, spartan Soviet apartment blocks.
Things are so tiny nowadays, you could probably cram a tiny processor w/ ram, and 5g modem into something the size of one of those cylindrical capacitors. Of course getting by the scrutiny of US engineers receiving a product with that would be a little harder.