Partly true. Multiple factors exist, including the big one called "location", great weather, jobs, shopping, entertainment, restaurants and schools. A big factor has to do with all the rich Asians moving here, for the most part from China. They are buying homes sight unseen through brokers. Many formerly white majority cities are turning Asian, many of them in Silicon Valley. Regarding legislation, stupid rental laws are indeed driving up prices of single family homes. Rent-control laws continue to remove or keep rentals off the market. I know more than a few friends who sold their rental properties because of that.
“A big factor has to do with all the rich Asians moving here, for the most part from China. They are buying homes sight unseen through brokers.”
My realtor friends in Orange County have been telling me this for a few years now. All cash offers from Chinese buyers. It has driven prices above what most American natives can afford.