The point of this article is that "the market" in housing is not functioning as one. Supply isn't rising to meet demand because it's being constrained by arguably unjust political restrictions.
Supply isn't the thing expected to raise boundlessly whenever demand goes up. Prices are.
In this case supply is said to be bounded by government. But imagine an alternate reality where SF was Tokoyo-fied to the max. The city has every last housing unit that could possibly be squeezed in. The peninsula is slowly sinking into the ocean. And there is still more demand for housing. What then? Supply isn't going to rise then, either.
So all I see is a whine that the government should prioritize one interest group's desires for lower prices over all the other desires and interest groups that coalesced to constrain housing in the first place.
Want to talk about the market not functioning like a market is "supposed to"? Look no further than consumers overpaying to pack into a city for salaries that do not offset the higher cost of living.
