If there were no zoning regulations, you are absolutely right...and this would've resolved itself long ago. But there are strong zoning and property rights at

If there were no zoning regulations, you are absolutely right...and this would've resolved itself long ago. But there are strong zoning and property rights at play. I'm very libertarian, and was priced out of the Bay Area (recently left grad school for Texas), but I'm actually sympathetic to the homeowners there who are using democratic means (i.e. their elected city reps) to support their interests. Society (in the form of the state government) could upend the property rights they are leveraging...but that would have significant incentive repercussions down the line. It would greatly weaken property rights...which is a foundation of Western society. There are far deeper, and interesting, issues aside from mere housing stock.