> Well, real estate is a very close proxy for "this place is worth living" which is a very close proxy for absolute population which isn't a direct proxy but is certainly a deeply contributing factor to all around economic growth/success.
When the government is primarily working on the numbers (real estate values, tax revenues from real estate) there's a perverse incentive to maximize the numbers rather than serving the needs of the entire population. SF is a great example of this--the real estate market is a disaster for the middle class, but it's fantastic for the landowners and the city. Indeed, it's in the interests of both of those aforementioned parties to drive out the middle class from the region and replace them with more wealthy buyers. The whole system depends on this happening or it risks collapse.