The cost of these additional processes adds up. Urban containment and growth control are not free. In many cases, these policies do legitimately protect a certain quality of life, but they are also effectively a tax on newcomers and prospective residents.
California home prices started deviating from national norms around the mid-1970s after individual communities and the state supreme court started enacting growth control policies. It created a system that is so politically unpredictable that we're simply not able to produce enough housing to keep up with population growth at a time when the country is re-urbanizing.