Why do you need this indirect theory when much simpler numbers like the disparity between increase of population and lack of increase in housing units are available?
There is a consensus that 'everything is overpriced', its just doesnt look like it will have a hard correction.
And I'm pretty sure low density zoning is in effect in every city in CA.
If the price of one thing increases relative to the price of everything else (including the price of labor, i.e., how much you get paid) that cannot directly be explained by a money supply change. A shortage being caused by something else is a much simpler explanation.
Shouldn't real estate developers be able to make even more money on top of this by increasing the housing supply? Wouldn't the "banks" have cheap loans for real estate developers? This can't explain a shortage.
Capital dollars (from VC's) are easier to come by in SV than wage dollars. You prefer to think of the shortage as one of houses. I ask you to consider the idea that it is a shortage of wage dollars.
Simple shock to demand can create shortages if supply is inelastic(which it is on RE in general due to the length to put a unit on the market, and it is so in San Francisco with its constrained supply)