This is just a failure of the free market to address the needs of the populace

Yes, the failure of the free market to exist is understandably a problem. For example:

• Municipal planning and zoning severely restricts where and what types of housing can be built.
• Controls on immigration keeps out the immigrants who would actually see establishing new communities as a better life. In modern Canada, for all practical purposes we only let in rich immigrants who feel like they have better things to do.
• Controls on immigration in other countries means it is difficult for us to leave.
• Market manipulation (e.g. copyright) directs resources in bizarre ways, often away from people who need housing.

The list goes on and on.

I don't know if I consider myself a free market type. I think smart regulation can be useful. But our specific attempt to avoid a free market is certainly broken, at least when optimizing for allowing housing for all. No doubt a free market would bring improvement over what we currently have for those in need of somewhere to live.