Builders seem to be following the same playbook as the private equity firms who bought up homes to rent/flip, which is to limit supply to keep upward pressure on prices.
I've seen regulations brought up as a reason why there isn't much new construction, but other states with similar building code/environmental regulations don't seem to have the same problems.
The exception to this IMO are zoning regulations. When those limit high density housing, eg condos/apartments, they can serve to substantially increase home prices. But, that's assuming builders are willing to build enough units fast enough to actually reduce unit prices, and they've consistently shown they will not do that.
Prop 13 could contribute somewhat too, but I imagine it's effect is also much smaller than private equity and builders limiting supply.
I've seen regulations brought up as a reason why there isn't much new construction, but other states with similar building code/environmental regulations don't seem to have the same problems.
The exception to this IMO are zoning regulations. When those limit high density housing, eg condos/apartments, they can serve to substantially increase home prices. But, that's assuming builders are willing to build enough units fast enough to actually reduce unit prices, and they've consistently shown they will not do that.
Prop 13 could contribute somewhat too, but I imagine it's effect is also much smaller than private equity and builders limiting supply.