[whb07]

To discourage foreigners buying property? A giant reason for home prices in California being so high are all the regulations restricting zoning, building codes, etc. Real changes would never really happen to "increasing affordable" homes really, as no rational homeowner wants to see their home values decrease.

On the side for demand, it's clear California's coast is the "chic" place for people to be. Not to mention relatively safe investment spot to stash foreign money away.