This is the same anywhere there's direct democracy. 51% of the people vote in the government that perpetuates the ponzi scheme of rising house prices because borrowing from the bank to buy a house then selling it later for a profit is the quickest path to retirement. Restricting housing supply is one easy way to keep house prices rising. The government needs to feed a story to the other 49%, hence these illusions like in California.
Besides restricting supply, another way to keep the prices rising is to boost demand, so the 51% also vote for the governments that increase immigration, which has been especially successful recently in the western US, Canada, and Australia/NZ. Every now and then, a government comes along that attempts to boost housing supply or restrict demand from immigrants or foreigners, but they soon get voted out because early retirement is the top criteria of voting decisions for the 51%. That government's initiative then becomes another carcass used to fool the other 49%.