Capitalism does work for large markets, just not ones where the demand side of the market is structurally disadvantaged.

Distribution, logistics and warehousing are great for capitalism, for example. Healthcare and housing, though, very much are not.

You only need to be rich because of regulatory barriers, though.

Without such barriers, multiple people could buy a Toronto or Vancouver residential property (they're needlessly huge) and build many Japanese style homes (if not something more dense) on the plot. All very affordable when divided up.

We just can't do that because the government says "no".