Housing market appreciation happens because homeowners vote to restrict housing supply. Turns out it’s hard to convince people to vote for lowering the price of something when most of their net worth is tied up in it.
Ridiculous housing appreciation is practically a global phenomena that is due to artificially low interest rates and easy credit driven by many of the central banks around the world. What you describe (housing supply restrictions) is a local phenomena in a few markets like San Francisco and not the primary reason behind the incredible speculative nature of the recent housing market. China has been building in hyper-sonic mode for decades and look at the bubble happening there, for example.
Japan has the lowest rates in the developed world and a very generous central bank but no housing appreciation.
No one expects housing to appreciate (except in limited, specific situations) and then no one votes or sets policy specifically to prop up prices. There’s a dynamic market with plenty of development and supply in the right types of housing and price points and everyone’s happy pretty much.
Japanese homes are mainly prefabricated and are nothing like the type of construction you see in most other places. So of course a home doesn't appreciate because they are the same as a trailer. They only last 20-30 years.
The land does appreciate in Japan though. And if they built good homes, they would too. But they choose not to.
Is this also true of better constructed housing say in high rises which would likely be built to last longer due to the heights of the building requiring concrete and steel?
Let the privileged folks have their fun, so the unprivileged can eat and not worry so much.