Correct. The city council is elected by residents of the city, and land owners have a strong financial incentive to elect representatives who will limit housing. (The shortage drives-up their property values)

You might think that renters living in the city would eventually outweigh the landowners and elect council members in favor of new housing, but instead SF passed a rent control measure which prevents the current renters from feeling the sting of the housing shortage so they aren't strongly incentivized to vote for more housing either.