I absolutely think we need to build more houses and that housing costs need to come down. but it doesn't really help with economic growth...
...and that has to be a priority at the moment. if you're going to borrow for capex you need to do it in a way that will generate or facilitate the generation of income. transport infrastructure is a great example of this. but there are more modern examples around IT. building schools. stuff that will pay you back.
as for the specific allocation of one source of revenue to one source of expenditure, it's economic nonsense. it's a thing that only exists in the minds of politicians. it's not real.
Public housing does pay you back. It reduces housing costs, puts more money into the economy ( by creating jobs and allowing the recipients of public housing having more disposable income). It stabilises family life, makes people feel more secure, etc. It is a GOOD thing