There's lots of places where the real estate values are very high, and poorer people are completely priced out of the area. Those places don't have a problem with that, because districts where lower-income people can live aren't all that far away, so it's not that big a deal for service workers to commute so they can work in or near there (as maids, housekeepers etc. for the rich people, or at the local businesses like restaurants located conveniently to those rich people).
The problem in SF is that it's geographically bound, and all the surrounding areas also have very high real estate values, so service workers who don't live in one of the rent-controlled places have to commute from very far away.
I think eventually, this is going to be a self-correcting problem if the NIMBYs prevent any new development. Pretty soon, it's going to suck living in SF because you won't be able to go out to eat there, you won't be able to buy any groceries there, you won't be able to hire a housekeeper there, etc. It'll be like living way out in the country, but you'll be surrounded by neighbors.
Personally, I think they should probably outlaw rent control (it'd probably have to be done at the state level). That's probably enabling SF to maintain itself this way, by giving lower-income people a place to live nearby. Eliminate rent control and those rents will go through the roof, pricing them all out of the city. Then the landowning residents can suffer without any services.
200$/month * 20people = 4,000$ per room.
My whole idea is to make it so service workers don't want to live in SF or work there either, causing services to either just not be available, or to cost an absolute fortune, seriously degrading the quality-of-life for SF residents. If you make it so service workers just can't live there (without resorting to illegal overcrowded occupation like you mention here), I think they'd just go elsewhere.
Even if you find a new job and an affordable place to live -- not that easy to do -- you're going to have to pay a lot of out of pocket expenses (i.e. rental deposit, moving/packing expenses), which is really tough when 47% of American's are so cash strapped they can't afford to pay for a $400 emergency. [0]
It also has a high social and emotional strain. You'd be leaving all your family, friends, and cultural identify you've built up in a city. Plus if you're in a relationship or have a family, your partner would need to find work too, and your children would have to leave school/their social circles.
It's a really disruptive life change, and though sometimes it can help improve someone's financial situation, it's a tough thing to expect of thousands of people. I can't blame them if choose to keep struggling to get by in their hometown.
[0] http://www.theatlantic.com/magazine/archive/2016/05/my-secre...
Ah, the FULL ACCELERATIONISM option. Just beat down the working classes until they revolt!