Tech Crunch writer Kim-Mai Cutler has a great and wonderfully comprehensive article on the problems San Francisco is currently facing regarding housing, gentrification, and culture.
As she points out in numerous of her bullet points regarding aspects of the overall problem, it’s a complicated problem.
Well, guess what, we humans have evolved a wonderful mechanism for dealing with complicated, many body optimization problems. And what is that mechanism? It’s called a market. And why is San Francisco broken? Because it is completely non-market-using when it comes to housing and property usage. San Francisco is as ridiculously bureaucratic as it gets on these issues and that is the problem and undoing that is the solution.
It’s actually quite simple, really, as her Trulia home prices versus building permits graph shows (about 1/3 of the way into the article).
If you read the article, can you come to any conclusion other than that government intervention has completely destroyed San Francisco? Let me know if you do.
Markets are amazing things if left to function mostly freely. I, Pencil is the canonical example.