Given the vast differences in climate impact between different populations and consumption habits, this doesn't seem to be the case.
Perhaps a better way of phrasing it would be "We're above the carrying capacity of Earth for Rich Americans".
As well, what makes you think we will reach an equilibrium for good neighborhoods? Some housing will be abandoned, causing blight; blight causes good neighborhoods to become less desirable, and they spiral down from there.
Detroit is a great example of what happens when neighborhoods lose people.
I was mainly talking about the SF case, where lower global population should make it more affordable rather than causing things to be abandoned. This is what is playing out in Tokyo, which is still growing while the countryside is abandoned. As for the small towns, it sucks, but dying small towns has been a thing for quite a while now as agriculture has become more mechanized. Detroit's kind of the odd man out being a depopulating metropolis, so I'd actually argue that it's a terrible example, at least for the next 100 years.
The impact of global population on SF is and will be negligible.
If there are less people, then pressure for good neighborhoods goes down, and we'll reach an equilibrium. I think it only seems like a ratchet because we're in the middle of a downturn after a 5000 year run of exponential growth.
Doesn't mean it doesn't suck to live in this time in terms of housing -- but in other terms, life is pretty outstanding. The two income thing is mostly new, but then compare the amount of time that medieval women spent on childcare and providing clothing. It's so much better now that they're not expected to spend every spare moment at the spinning wheel.