Zoning should be used to keep factories out of neighborhoods, nothing more. Also, building code is making houses boring. Should be a third-party standard, like UL.
The limits are: Getting people willing to work in the industry (a lot of it is hard labor for okay but not great pay). Zoning which doesn't allow you to build at all in high demand places. Building codes that sometimes require things that don't make sense. Places where builders can get permits "by right" tend to have a lot more building and thus much lower housing prices.
If that created a construction boom, then it would be a boom of constructing very expensive housing, not affordable housing. At least, that's what would happen if recent history is anything to go by.
I'm involved in housing advocacy locally, and a huge impediment to building more is zoning and NIMBYism.