&gt;  So, even before construction capacity&#x2F;permit issues...<p>Which -let&#x27;s be real- is nearly 100% of the cause of the insane rents in the area. [0]<p>&gt; ...100% of the people who want to move to SF are competing on price for 30% of the inventory.<p>You make it sound like people never move out of a Rent Stabilized apartment. I <i>know</i> this not to be true. In my building, we get at <i>least</i> one entire-apartment vacancy every two or three months. Those apartments that are going for $3k+ per month that I talk about? They&#x27;re <i>often</i> covered by Rent Stabilization. :)<p>Also, remember that SF&#x27;s Rent Stabilization is the reset-to-any-rate-upon-loss-of-original-tenants flavor of rent control. So, once <i>any</i> Stabilized apartment loses all of its original tenants, [2] the landlord is free to set the rental rate to any rate.<p>[0] <a href="http:&#x2F;&#x2F;my.paragon-re.com&#x2F;Docs&#x2F;General&#x2F;SixtyFortyImages&#x2F;3-15_LAO-CA_Built-vs-Needed_1980-2000.jpg" rel="nofollow">http:&#x2F;&#x2F;my.paragon-re.com&#x2F;Docs&#x2F;General&#x2F;SixtyFortyImages&#x2F;3-15_...</a> via [1]<p>[1] <a href="http:&#x2F;&#x2F;www.paragon-re.com&#x2F;Bay_Area_Apartment_Building_Market" rel="nofollow">http:&#x2F;&#x2F;www.paragon-re.com&#x2F;Bay_Area_Apartment_Building_Market</a><p>[2] Known as Master Tenants, these are the <i>first</i> set of folks whose names were on the lease signed that established the base rate of that unit for that occupancy period. Tenants added <i>after</i> the initial lease signing do <i>not</i> count as Master Tenants.