I would argue housing reaching the current prices is not good for the overall economy because it creates unreasonable pressure on people who aren't in the tech

I would argue housing reaching the current prices is not good for the overall economy because it creates unreasonable pressure on people who aren't in the tech industry and still have a reason to live in the Bay Area. First, this makes it unreasonably difficult to stay in the region you grew up in unless you get into the top end of the local income brackets. Second, it makes it unreasonably difficult for all kinds of important and necessary, but lower paid, workers to live in the area. A city of nothing but high-end tech workers, with no teachers, police, firefighters, etc. would not be a very nice place to live. As far as the "optimal amount of new housing," why not just match the number of new households moving into a region? That seems like a good place to start.