This is a clear example of why it's so very important to limit the influence of National Government. When a state screws it up so bad you can simply move to another state. When the Imperial Federal Government drops the ball you are stuck with it!
If house values go down a bit many taxpayers will be underwater on their $500,000 loans. They will be a captive audience. It will be a virtual Berlin Wall.
2,502 Californians expressed grave concerns about the cost of housing and see little upside to the run-up in housing prices.
Nobody I know in California thinks this. Everyone believes buying a house is still the in-thing to do and that house values will continue to go up. They have short memories of the last real estate down cycle, or the stock market bubble burst.