Policy needs work, I agree. My conservative friends like to mock me, blame the Democrats, or just the entire concept of liberalism, for every problem in San Francisco. Maybe they're right, but I've heard strong arguments that many problems we face are hangovers from old-guard republican policy:
http://www.sfweekly.com/news/the-great-eliminator-how-ronald...
I've also heard arguments that a lot of this boils down to just Prop 13, sponsored mostly by Republicans, particularly anti-tax activist Howard Jarvis but also Paul Gann.
https://en.wikipedia.org/wiki/California_Proposition_13_(197...
https://en.wikipedia.org/wiki/Howard_Jarvis
https://en.wikipedia.org/wiki/Paul_Gann
Anyway, I think finger pointing is boring and useless, and as someone who's social circle is split in third between the deep south, the not so deep south, and the capital of liberalism in America, I've learned to address these kinds of discussions with "point your finger at what you think the solution should be instead." Saying "blue states suck at building cities" is just another form of Ad Hominem - what specifically is the problem, and what specifically do you think the solution should be?