Sure thats part of the problem, but its convenient to lay this as generic government interference when we know its usually the real estate owners who collude or make up parts of local government to achieve this interference. Stopping this regulatory capture seems to be a prerequisite for most good social change.

Regulatory capture is still the government doing it, not the market.

Government will always abuse its power, the idea is to give it as little as practical.

which part of the multi-hundred laws, regulations, taxes and discretionary decision making is "interference" and which part is.. you know, having government with laws? I suggest that the implication here is that a local feudal lord is the correct form of governance.. it was for a thousand years.. that's what you imply, really

Interference is things like preventing new construction. Other things are unreasonable burdens local government tends to put on landlords, which always result in higher rents.

For example, in Seattle, the landlord cannot charge a tenant for damage to the unit if the damage is the result of domestic violence.