I know that some might argue that "build baby, build" is the solution. However, in an earthquake-zone (which I recall California is), isn't it risky to build skyscrapers and other large structures?
Governments are sometimes oblivious to general needs, but there must be a good reason why more housing-construction has not been approved in some areas.
(I'm thinking in densely-populated cities like Berlin, London and Paris, congestion and pollution might be issues they have to worry about also)