I live in Escondido, and you cant swing a dead cat without hitting a construction worker with a lifted truck and a Glamis sticker, so just from observations I really don’t see a labor shortage, as for land use restrictions I agree but only that it is hard to build large housing tracks, infill not so much.
Also, you could build the houses off site in a factory and just truck them in, just look at Blu Homes, they make great looking prefab houses better than most of that Temecula track stuff.
Lastly, I am shocked that Row homes are not making a come back, they built some in downtown Escondido and look great and sold pretty fast, and you don’t have that Apartment/ Condo problem like the people stomping overhead or lack of parking.