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The reasons this sort of thing happens are the reasons humans organize themselves into cities at all. Turning off the growth spigot while maintaining everything else in working order isn't a lever that policymakers have.

What they do have are ways of dealing with population growth that lead to drastically less displacement.

Sure, no out-of-towner needs to live in Seattle specifically. New entrants to the workforce do need to live in a city with job growth in their industries, and all of those (for software development) are having this conversation. Could change if remote work becomes more available.