In California the permit laws are aggressive and slow, so much so that it's common practice to make most modifications unpermitted. This severely limits new home supply, because permits include new homes. The solution? Federal program which gives huge subsidies to purchasing an expensive home (they give you a cut to buy the house, no interest, and they take a cut when you sell).

This is complicated by a property tax law similar to rent control, where your taxes are frozen at the time of purchase. This results in a market where few people are willing to sell and most people are unable to build. Thus rental prices in the region are dirt cheap relative to home prices, versus an appalachian town where the opposite is true.

For me, this is an example of red light cameras causing MORE accidents than without the camera because it interferes with human behavior. Specifically, the painfully slow permit process causes most building to be done unpermitted and therefore at risk of harm to human life (the purpose of the permit is to assure safety). As we know, the unspoken purpose of the red light camera is revenue, thus representing a conflict of interest between true safety and revenue, and I think a similar conflict is rotting California's real estate situation as well, in service to wealth building more than it's in service to the common man.