You don't reduce the regulation, you increase it's flexibility. Such as allowing dynamic zoning where an area that is zoned as medium density residential automatically becomes hybrid high density residential/low commercial once the districts zoned around it as low density residential are filled.
The issue is we zone something and it stays that way until it's manually reviewed and rezoned. The district has no ability to change itself according to the circumstances. It has to rely on a third party that acts without due haste and with great reluctance.
Land value tax is interesting because it encourages/forces more efficient use but you can do a lot more by cutting demand through limiting immigration and financialization opportunities.
Otherwise, any welfare program will just get some of its value captured by landlords.