SF has severely restricted supply for decades with some of the most restrictive planning and building codes in the US. In SF anyone can force a hearing on a building permit - after planning review, neighbor notice, hearings appeals, etc. This is unheard of anywhere else and is why it takes years to build new housing. Then there is the rent control ordinance that stopped new apartment building for a decade and keeps thousands of units vacant today.
This was entirely predictable. There is no free lunch. You can't have cheap housing for some without raising the price for everyone else. SF is just a particularly extreme example.
BTW - Don't worry about rent control going away anytime soon - we are locked in politically. And planning restrictions are unlikely to ease either. So expect continued above inflation price/rent increases and a slow exodus of the middle class. Due to the poor schools we have already lost many families.
> have the well know effect of reducing supply
This critique seems rather incoherent.
Understand? I'd not, I suggest reading any basic economics text.
Rent control in standard economic theory
http://homepages.wmich.edu/~u5nwaogu/Overhead/Chapter%206%20...
Rent control in practice in SF
http://www.nytimes.com/2013/06/07/opinion/king-of-my-castle-...
http://mjperry.blogspot.com/2011/05/because-of-rent-control-...
The third made a lot of noise about rent control, but then cited another article which, again, made no reference to the practice.