Housing cost a lot along the coast in California, because land is limited, and demand is high. That is not the parts where land is limited, and demand is high. You can almost certainly get that house for almost nothing... Unless there is some sort of mineral production possible.
No, the major issue in California is land is limited because government limits it. Housing is expensive because taxes and regulations on homes drive the price up. Demand isn't particularly high because people are leaving California in droves.
There is one small kernel of truth in what you are saying, but mostly it is garbage. Land in the interior of California is almost free to anyone who wants it. It is some of the cheapest land in America. No one wants it because of the lack of water, and the fact no one wants to live there. The land along the coast is limited because it is limited. A huge number of people want to live there, but it is limited.
Now for the kernel of truth. Constructing large/tall buildings along many parts of the coast is very difficult because of limitations put in by the government. Land is not what is being limited by the government, but rather floors. This is driving up the cost to live in some of the most productive parts of America, and forcing Americans to live in less productive places. It is really hurting the economy.
https://californiaglobe.com/article...n,freshwater to combat a drought in the state.California Coastal Commission Rejects Huntington Beach Desalination Plant Proposal
https://calcoasttimes.com/2022/02/1...e opportunities for people in need of housing.Coastal Commission bans new dwelling units in Cambria, Los Osos
https://www.counterpunch.org/2021/03/25/california-coastal-commission-bans-orvs/California Coastal Commission (Finally) Bans ORVs
https://www.californialandusedevelo...rentals-required-coastal-commission-approval/Ban on Short-Term Rentals Required Coastal Commission Approval
https://www.cnbc.com/2019/10/04/tes...nvestigation-by-us-traffic-safety-agency.htmlTesla under investigation on claim it throttled batteries to hide fire risk
https://www.motorbiscuit.com/tesla-fires-notoriously-hard-put-due-batteries/Tesla Fires Are Notoriously Hard to Put out Due to Their Batteries
https://driving.ca/auto-news/news/tesla-updates-its-cars-in-wake-of-shanghai-battery-fireTesla updates its cars in wake of Shanghai battery fire
Tesla's main competition in China, Nio, is recalling its cars as well
https://www.cnbc.com/2019/10/04/tes...nvestigation-by-us-traffic-safety-agency.html
https://www.motorbiscuit.com/tesla-fires-notoriously-hard-put-due-batteries/
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Seems that Tesla isn't the only "Pinto" on the market...
https://driving.ca/auto-news/news/tesla-updates-its-cars-in-wake-of-shanghai-battery-fire
https://www.msn.com/en-us/money/com...pc=U531&cvid=bc63dc8dde8a4fdc8439c18487e8aebeCanadian Tesla owner says automaker locked him out of his car until he pays $26,000 for new battery
Some Tesla owners have voiced concerns about the vehicle in recent months. A group of owners in Norway went on a hunger strike in August in an effort to get CEO Elon Musk’s attention about a long series of problems they claim to have with their vehicles.