How? They had to pay more because the employees had higher housing costs, because of artificially scarce housing in SF. Now the employee gets the same pay net of housing, the landlords (as a class) get less, and the company keeps the difference.
I think you and the parent are just talking past each other and you really agree on the same thing.
I don't see this as a new wealth transfer though, I see it as the cessation of an ongoing wealth transfer. I think the parent does too.