This is not the "second way" but the only way. The notion that we should have a split system of housing production, where permission to build is governed by planning economy mechanisms but the actual building of housing is governed by market mechanisms, is asking for trouble.
The second way is to become less reliant on planning, forecasting, etc. Perhaps use market-based mechanisms. Say when land prices reach a certain threshold, a process is triggered where cities would then need to expand urban growth boundaries, upzone, etc.