I think it has more to do with the asymmetry of employment vs housing. Companies can reach any customer through shipping or the internet but workers cannot reach any company because they have to live in housing which has to be close to their job.

If everyone worked remotely then Californians could keep their insane housing policies and people in "fly over country" could get access to jobs. Everyone would get exactly what they want.

So either make it illegal for cities to have significantly more jobs than housing or give employees the right to work remotely. Of course both of these option haven't happened and I don't think they will ever happen.