>However, it's worth considering that any politically and physically feasible[1] amount of development might not satisfy the latent demand, nationwide, for a house in San Francisco. It is not inconceivable that there are literally 2 million people in the US that would like to immediately move to SF if housing prices were in line with, say, Minneapolis or Denver.

On the one hand, I really don't like San Fran and don't want to move there. On the other hand, well, NYC is eight million people.