But instead, we are simply very far behind on infrastructure and building.

We are.

We should be building

We should.

...dense housing, clean energy, transmission lines, etc...

I agree, but who's going to initiate all of this development? I suppose the idea is that without the obstacle of unnecessary regulations, private capital will flood into these developments, but I don't buy that regulation is what has been primarily holding private capital back. Investors will cut through any and all red tape if the potential for profit is high enough. Where's the profit potential in building out electricity transmission infrastructure, for instance? Aren't most infrastructure projects publicly directed and funded, anyway?

I just think people like Klein place far too much faith in the invisible hand of the free market.

to make up for decades of intentionally slowing down development, mainly intended to protect homes and communities that were already built.

Not to protect communities, to protect individual wealth. The vast majority of American households have the vast majority of their wealth in their home. It is by far their most valuable asset. For many Americans, it's their retirement plan. For many others, it's the only inheritance they have to pass on to their children. That's why they vote for restrictive zoning laws, they're trying to protect what relatively little wealth they've been able to accumulate in their life.