Prop 13 absolutely disincentivizes building housing. Other policies can also be bad. But grandma's house isn't being bulldozed to make way for a quadplex because she's insulated from the market.

https://www.kqed.org/news/11700683/too-few-homes-is-proposit...

But if you own a home in California, you are incentivized to maintain prop 13.

It's funny how hard it is for people to understand something when it cuts against their personal interests.