Rational people tend to get the safest housing they can afford.

Therefore regulating housing is quite possible to only make things less safe, as people end up giving up money for healthy food / education / healthcare / dentistry etc to fund the trumped up "enviromental study" "planning and zoning" "code" and other requirements that might not best fit their budget.

Totally agree on all this points. The real issue is insufficient supply of housing. All these problems would go away if housing stock kept up with population. The interim regulation is addressing risks of the outcomes of poor policy, rather than addressing the poor policy in the first place.