I think you have a point about regulatory capture. I would say, however, that in a market with massively unequal wealth distribution, those that control the capital are (1) looking for the best return on investment and (2) know that land value will continue to appreciate as long as population growth is trending up. I think you would need to both fix the massive wealth inequality _and_ the massively corrupt and inefficient zoning laws in order to address the whole problem. If you only fix regulation, the rich can still just buy up all the land and become modern day feudal lords and rent-seekers.