I actually do this for a living (try to end homelessness that is). The solution, of course, is blindingly simple, and even free market capitalism based. Build more housing. Thats it, that’s all it would take. If there were more housing, then market forces would kick in, and housing would become more affordable.
Problem is, of course, housing being more affordable is that the house you just bought for say a cool mill or two, mortgaged up the yinyang,counting on its appreciation as your retirement fund, suddenly isn’t worth that any more. For this to work, the value of your house, and everybody else’s, would have to depreciate. A lot. And more to the point, so would the value of all the (also mortgaged up the yingyang) commercial rental properties.
Aside from the rate payers, who would get screwed, and will vote accordingly, you would actually cause pain to banks and the rest of the financial and investment sector. Good luck with that, I mean you can sometimes screw the voters, but the banks? I don’t think so. So the zoning will remain insane, and pretty specifically forbid the building of low income housing in anybody’s backyard.
There is a very direct line: the actual price of all that lovely appreciating real estate making the rich richer and maybe even making a lucky few of the desperate middle class a bit better off if they manage to carry their insane mortgage for another 15 years, is the suffering of all the guys pushing shopping carts and sleeping in boxes. Its kinda like the homeless are the manure that nurtures all those beautiful homes.
But San Francisco is SO BEAUTIFUL they say, can’t muck it up with cheap concrete high-rises! You want it to look like Hong Kong or something? Well, yeah, actually, I do, if the price of all the picaresque beauty is a bag lady sleeping in an alley. ,
May I suggest a fine piece of short fiction by Ursela K Le Guin, The Ones Who Walk Away from Omelas for a somewhat metaphoric but extremely accurate and apropos description of the situation.