You’re not wrong, but I feel like this is an over generalization. You’re right that the current housing shortage has been caused largely by local regulations. On the other hand, many state legislatures are realizing this fact and working to craft new regulations that loosen and supersede the local ones. E.G Oregon passed a law a few years ago that requires residential areas to be zoned for multi family units in cities over a certain size. I think that kind of law is going to be pretty important to getting the housing situation under control.