Here is the crux of the matter (in mathematical terms): "university admitted about 7,000 students this year, up from 5,300 last year, according to the Santa Cruz Sentinel."

"The university is years away from building a planned 3,000 campus housing unit, but thousands of local residents have already signed a petition to stop the development"

So they planned on having 3000 more housing units (staff, students and additional personnel), they didn't get it. There is your shortage. The plan was flawed because it didn't account for the fact that local residents might not go along with it.

Pinning this on the tech industry is another example how lazy politicians push their problems on tech industry because it's a popular target.