Careful how you swing that axe of relaxed zoning. Got me nearly kicked off my local town council. "Why can't that town two towns over build more apartments for our day laborers?" they all ask in unison.
However, the market evangelists don’t understand that just because there is a business case to do something, doesn’t mean anything should happen either. People and therefore their markets don’t operate on entropy alone. There is a lot of irrationality that is hard to quantify.
I know there are some counter examples, but I always think about the beautifully organic growth from some of America's greatest cities in the early 20th century. And how that growth would be categorically impossible today because everyone's afraid someone's gonna build a lard rendering plant next to a single-family house. Or that poor people will move in across the street. Goddamn I'm sick of selfish assholes.