Wouldn't be such a big issue if housing policy kept up with the change. That's the biggest issue for young people. They want the change but young people aren't in control. (And for whatever historical reasons - young people still don't vote enough to enact the change they wish to see)
I'm not sure if there is any policy that would lead to everyone being able to afford the same amount of real estate as if it were 30 years ago. That's just impossible given the context and population growth.
We could easily build more high density. There are a lot of young people who are interested in high quality high density housing - but it's just not available. Not everyone wants or needs a SFH. We don't build up in this country almost at all and that would solve a lot of the pressure. (It would also allow for people to use other means of transport that they actually prefer - many young people don't want to drive!)
There are a ton of people who are interested in living in densely populated big cities but the issue is that there isn't enough high rises or tall residential buildings to offset the demand.
There's definitely policy that could be done but it'd destroy the existing value for homeowners and landlords. That's why it doesn't get passed - obviously.
Also what the SF Bay Area lacks is family oriented high density housing. High density housing is built for the young and single. Family oriented means easy access to fenced in playgrounds and parks, small but numerous bedrooms with large living rooms, etc.
