Look at the Scandinavian, very deep green countries at the top of the map. They all have strictly regulated construction processes, with political involvement in city planning. It takes many long years of project planning before you can put a spade in the ground in Stockholm. What’s more, there is government meddling in rent setting - they are not free markets. Still, they seem to do OK?
I don’t know what the author has against housing regulations but this argument is missing some part.