For college in particular, where it is quite specifically the fact that you are (better skilled and/or better connected and/or more able to pay) than everyone else that commands a premium this is very much the case - we can't just build more prestigious schools.
For housing, for most people, the bulk of what makes a neighborhood desirable is location relative to their work and social group and activities, cleanliness, and safety. Prestige is less of a component outside the very high end, where we don't care to subsidize anyway. The market (and the rest of society) can absolutely provide more "desirable neighborhoods" for the desires of the people who will be turning a net positive from BI.
For housing, for most people, the bulk of what makes a neighborhood desirable is location relative to their work and social group and activities, cleanliness, and safety. Prestige is less of a component outside the very high end, where we don't care to subsidize anyway. The market (and the rest of society) can absolutely provide more "desirable neighborhoods" for the desires of the people who will be turning a net positive from BI.