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To my knowledge most of the various cities in the LA area have high housing prices relative to most of the rest of the US, Do those cities (Fresno for instance) have the restictive zoning issues you mention or just the LA proper. I dont think the metro LA area has much in the restriction of subdivisions, given the amount of suburban sprawl that is metro LA
Either way, the only way housing prices in LA would be as high as they are is because people want to live in LA and are willing to pay high housing prices for it (ie demand)
Many people are moving out of the city because of those prices. Supply hasn't significantly increased for many, many years.