Earlier quoted context omitted.
No, the difficulty of increasing supply has directly led to increased home prices.
Supply increase difficulty has not changed recently. Demand increase has. So if we're going to blame it on one factor, it makes sense to pick the one that has changed and is easier to control. Less friction in increasing supply is also not an unalloyed good. You can look at the commercial office market, which is much less restricted and has huge boom/bust cycles. And that's before we get to the externalities of rapid…
This is a problem only for investors. Dealing with that is their job. Protecting them from it is not a good reason to restrict housing supply.