California has a housing crisis across the board. NIMBYism and city zoning practices are artificially preserving neighborhoods with expensive, single family homes over what is actually needed: multi-family condos and apartments, combined with brand new social housing projects and homeless shelters.
This is a good start, but a lot more needs to be done.
No, they're not. In the past couple of years new legislation has been passed which incentivizes new builds to be high density, but there's still a lot of pushback from home owners and cities against building them.