Earlier quoted context omitted.
Well, it seems like you're making an assumption about the 'opportunity cost' of building/operating the apartment building, that it's grown far less than the wages. If your argument (that rental costs are too high) rests on that assumption, seems like it should be addressed and backed up. I am curious, though, about the artificial constraint you mentioned. Don't know what you're specifically referring to, would like t…
My analysis is a top-down one, In summary: rents in SF/Bay area are 3-4k for new construction 1 bedroom, which is say double Chicago or Houston, and much more even than the Bay Area 10 or 15 years ago. So it reasons that at the prices being paid, people should be able to build profitably. That they aren't implies they can't or have onerous restrictions. For fun, take a (google maps) walk around SF or downtown Oakland…
As a long time home owner in the area I like how this is finally happening after decades of people thinking an Oakland revival was just around the corner. Most of the companies doing the construction are from out of state. Maybe they just didn't know it was impossible to build in Oakland, saw the huge potential profits, and went for it.