The government is deeply entangled in the housing market, playing both sides of the ball. On the supply side, government imposes zoning rules, building permitt

The government is deeply entangled in the housing market, playing both sides of the ball. On the supply side, government imposes zoning rules, building permitting, building codes, setbacks, height limits, etc. All these lead to a tightening of supply and an increase in price. Some can lead to corruption, such as if the permitting process is too restrictive and results in bribes & kickbacks to the officials in charge. The government boosts the demand side as well through Fed policy first, which artificially lowers interest rates. Then there are all sorts of housing policies that encourage home ownership with eased lending standards, better loan terms, etc. That boosts demand and increases price. So you're talking about Prop 13, but I'm talking about the overall picture.