The coastal zone is also subject to Coastal Commission oversight, which I believe could override the Builder's Remedy, though the legal specifics would probably have to be settled in court, IIRC. Chris Elmendorf has written on this, if you want details.

But the prospect of a long lawsuit or a long decision will be enough to kill nearly all Builders Remedy projects in the coastal zone, as it would jack up the risk of success far too high to pay for the profits, most likely.

Dense housing on the coast would be more democratic than expensive single family homes.