Zoning costs money everywhere. That's work that needs to be done by a person. That person gets paid. It's capitalism again.

Prop 13 actually limits property taxes and the assessments that can happen. You're actually hurting your argument with this point.

Regulations don't reduce supply because regulations don't purchase properties. People purchase properties and then that property is off the market.

The Bay Area is proof that limited supply (because there is only so much land in the area) + steady (or increasing) demand (because people need to live close to where they work for some baffling reason) will cause property values to raise steadily over time.

Again: It's supply and demand. Regulations have very little to do with price increases.

To be clear: I'm not anti-capitalist ... I'm just anti "wrong context"