I think energy is actually a good example here of how it should work. At least in the US, it's pretty tightly regulated. Utilities are allowed to run a profitable business, but it's not a totally free market like housing is. We could certainly use some regulations to prevent private equity from buying up millions of single family homes as assets.

It's hard to think of a market that is less free than housing, including electric utilities with the advent of solar. Probably pharmaceuticals? I'm sure there are a couple others. Calling it "totally free" is naive.

Because of how tightly coupled local taxation is to the real estate market, the political risk associated with angering local homeowners, and the regulatory capture performed by local government employees and supporters of the status quo, it's highly, highly regulated already in nearly every populated area of the US.