How much do you think it will affect housing prices? Is there a model that can predict the effect? I'll be surprised if it helps a lot. Demand seems infinite.
Yes, the model is called supply and demand. When you increase the quantity supplied, the only way the extra quantity can be sold, is if the price drops. If you increase the quantity supplied without reducing the price, the extra units will never be sold. Why would they... anyone who was willing to pay the previous price, would have already done so and will already have a home in SF/Oakland. The only way to fill the new units is to entice new residents who aren't willing to pay the previous price point.