It seems weird but you have to look at the market effects evangelist perspective to understand their position. A person believing in these forces might say that by having a large day laboring population and not building housing for them, there is now strong incentive for other areas to approve new housing and take advantage of guaranteed demand. And then they might go on to cite a location like (EDIT: not daly city but there is a bay area city that recently approved a ton of apartments whose name escapes me) that has taken this approach and really changed their municipal budget for the better as a result.

However, the market evangelists don’t understand that just because there is a business case to do something, doesn’t mean anything should happen either. People and therefore their markets don’t operate on entropy alone. There is a lot of irrationality that is hard to quantify.