> But a lot of people would not consider that a good outcome.
If they didn't consider that a good outcome, they would stop paying money to move there, or move out, and cause housing prices to drop, thus solving the problem.
personal incentives don't "solve" social problems. People compete themselves into subsistence -- not motivated to improve a situation until it's too miserable to bear, and then back off just to the edge. This is the "tragedy of the commons" coordinate problem
Except what the SF Bay Area is facing isn't the Tragedy of the Commons--it's the Tragedy of the Anticommons, where the owners of resources underutilize them.