That's one solution. The other is that housing becomes such a huge liability to local commerce that people will just leave. Housing prices are like high taxes

That's one solution. The other is that housing becomes such a huge liability to local commerce that people will just leave. Housing prices are like high taxes or burdensome regulation - they add to the cost of doing business, and in the extreme case people will just get out. The end game if the Bay Area won't allow more housing to be built is that the industry will move out of necessity. This is already happening, though not at scale.