zoning is very easy for local busybodies to capture, since normal people don't have time to give a crap (work to do, errands to run, kids to take care of, etc.). and those busybodies with the most time (older, wealthier) want very restrictive zoning. (see also: HOA regulations). the particular issue here is defined by local zoning.

Japan managed to arrest housing prices by moving zoning definition to national rather than local level, where local busybodies do not have the critical mass needed to do regulatory capture. Local areas can still decide what zoning to put where, but it's not nearly as ridiculously specific as American zoning can be. (e.g. you can sell lemonade out of your driveway, but not craft beer; or you can't run a hair salon, but you can run a daycare from your house, but only if you watch a maximum of five kids. etc.) California is now trying a similar tack by loosening zoning regulations at the state level.