Something being overlooked is the artificial increase in housing that is being perpetuated by California regulations. I have a friend trying to build a garage (approx. 9x10m) that after 4 months is still in the "trying to get all the permits" stage. He is a carpenter so the building is easy, especially with his contacts in the industry. He estimates at least 30% of his original budget will be spent just getting the actual construction specific permits, soil tests, engineered drawings, etc. Then he has to get it past planning committees, historical committees, heritage committees, etc. with their fees.
This is going in a subdivision that has virtually identical houses and garages already in place, all he is doing is catching up. He ended up giving up on having a sink and toilet in the garage because of the extra environmental assessments that would have to be done.
I'm not saying it needs to be a free-for-all building climate, but I think a little pruning of the existing regulatory environment is in order out there.
That would allow housing to be built out quicker and cheaper and put some downward pressure on the ridiculous housing market.