Are you really claiming 1% of the rich could not buy all the houses (i.e. land), even if you government would give permits "everywhere"?
Tell me one reason why the rich would not buy all the property, even if there is (un)reasonable amount. That way they can control the people thus ensuring they always get a bigger slice.
I think this is the next phase on the "fewer owning more and more": you'd be better of being a slave than having a job & rent.