Why should people play by these rules? A tiny condo in SF is over 10x median income before taxes... and we have a very high median income.
The entire system of intentional real estate shortages we have is effectively a cartel. It's a zero-sum game, which is extractive by nature. We need housing for lower-middle class people. We need housing for poor people. We need people to have a future to lose. We need people to have a path to build wealth. Right now, in most liberal urban areas, we just don't. We make up every excuse in the book to preserve the faux-utopia for the incumbent homeowners who set up the system decades ago and have all literally become multi-millionaires from it.