It's not money that's the problem, otherwise San Francisco would've solved everything by now. It's NIMBY legislation that limits buildings to 4-6 floors instead of 50. We could literally have 10x density if zoning laws allowed for it.

I being a prat and suggest all this can be fixed by old fashioned wage inflation and the government underwriting a buttload of multifamily construction.

It's been dropped down the memory hole but that's what the Truman Administration did after WWII. But with single family homes.

What good is additional housing if Zillow just buys it up to resell at higher prices?

Isn't the whole point of this article that Zillow is stopping homes at a loss? At some point, it won't be worthwhile for Zillow to do that.