One issue you don't mention is the urban growth boundary laws, which basically mean there is no competition for housing outside of areas that already have housing.

Prior to these laws, cities absolutely could not get away with such nonsense restrictions on growth because people would move just outside of the city limits, establishing new communities not within the city's taxing region, so cities would try to accommodate to keep the taxes in the city.

Now, the cities all know that people cannot move outside of cities, so they can behave as oligarchs.