It does NOT take an economic fairy tale to determine precisely how the situation plays itself out.
For example, it's not as though the occupants of SF are going to be satisfied living in a city without access to bars and restaurants, no matter how wealthy they are. There are bars and restaurants in SF as it stands, are their staffs all living in subsidized affordable housing? No. For one, they simply get paid more than outside of the city, because things cost more. They get larger tips because people make more money, and have larger bills to tip on. While some might be subsidized with rent control, others live with roommates, or they live outside of the city. There are any number of circumstances they find themselves in, but the point is that it is worth it to them to be able to work in the city. If it was not, they would not work here. And if they did not work here, their wages would go up in order to fill the demand. And let's take this even further. What if their wages go up so high that the drinks and food begin to cost a very undesirably high amount to the residents? Well then, that begins to affect the desirability of living in the city. Suddenly less people want to live here, because the cost of living is so high. And when less people are competing to live here, rent starts to go down, and so do wages, and prices. The entirety of the system is in stabilizing flux as a consequence of this.
If we're actually arriving at situations where people are making a two and half hour commute as a consequence of them having no alternative options (which is not the same as them making the commute because of better opportunities), then we agree that we're no longer dealing with a viable model. I used to do a 1.5 hour commute each way, every day, for over a year, because it was worth it to me to live in that particular area rather than being closer to my work. If what you're suggesting is that their only options are effectively capable of exploiting them due to no alternatives, you're effectively describing an overall employment crisis. Given a system-wide lack of employment opportunities, which is certainly not the reality we currently find ourselves in, then we surely agree that there is an appropriate role for the state to fulfill in mitigating the situation. But that still doesn't mean that we agree that affordable housing is the correct mechanism for addressing this problem, which we surely do not.
I agree with this but I think it underestimates how far the central bank's printing of money can push us out of equilibrium. Also, the ability to create real value is harmed by regulations like labor, zoning, and health codes.
For example, it's not as though the occupants of SF are going to be satisfied living in a city without access to bars and restaurants, no matter how wealthy they are. There are bars and restaurants in SF as it stands, are their staffs all living in subsidized affordable housing? No. For one, they simply get paid more than outside of the city, because things cost more. They get larger tips because people make more money, and have larger bills to tip on. While some might be subsidized with rent control, others live with roommates, or they live outside of the city. There are any number of circumstances they find themselves in, but the point is that it is worth it to them to be able to work in the city. If it was not, they would not work here. And if they did not work here, their wages would go up in order to fill the demand. And let's take this even further. What if their wages go up so high that the drinks and food begin to cost a very undesirably high amount to the residents? Well then, that begins to affect the desirability of living in the city. Suddenly less people want to live here, because the cost of living is so high. And when less people are competing to live here, rent starts to go down, and so do wages, and prices. The entirety of the system is in stabilizing flux as a consequence of this.
If we're actually arriving at situations where people are making a two and half hour commute as a consequence of them having no alternative options (which is not the same as them making the commute because of better opportunities), then we agree that we're no longer dealing with a viable model. I used to do a 1.5 hour commute each way, every day, for over a year, because it was worth it to me to live in that particular area rather than being closer to my work. If what you're suggesting is that their only options are effectively capable of exploiting them due to no alternatives, you're effectively describing an overall employment crisis. Given a system-wide lack of employment opportunities, which is certainly not the reality we currently find ourselves in, then we surely agree that there is an appropriate role for the state to fulfill in mitigating the situation. But that still doesn't mean that we agree that affordable housing is the correct mechanism for addressing this problem, which we surely do not.