There is not a housing shortage. It is misidentified as a housing shortage, but rather a repatriation of individuals from urban city centers into suburbs and rural areas. Sacramento is a great collection of...wait for it....suburbs and rural areas, with a city center mixed in. Why do you think there’s a shortage, because people can’t get what they want? Or because people can’t afford it due to price inflation?
The reason prices have gone astronomically out of hand is because homes in city centers have been sold to favor other relatively cheaper homes in areas mentioned above. So much so that these individuals are bidding up homes(all cash) to astronomical prices not consistent with appraisals or price/sqft of comparable homes sold a year ago.