As the young recent transplants build their savings and seek to plant roots and start families when they get into their 30s, they'll look at single family housing. But the natural beauty includes water on two sides of the city and there is basically no undeveloped land to add more single family houses. Combining these employment, demographic and geographic factors, I expect demand to continue surging forward and supply to remain constrained. Building up and new apartments coming online is starting to reduce pressure on soaring condo/apartment rent costs, and building up to increase supply is a valve that can continue to reduce rent pressure for those without families. But I don't see a way forward to increase single family housing inside the city limits - in fact supply will go down as more townhomes and apartment buildings go up.
It seems, as the article hints at but doesn't much explore, that American Millenial coastal urban dwellers will need to develop a new conception of family housing (that is not single family housing with a private yard). I think there are options here, and the conception of the American dream replete with single family housing around an urban core seems like a relatively recent post-war phenomenon. What does family housing in Tokyo look like? In dense European cities? Historically before the 20th century? What new forms could it take, especially as we build up and think about modern amenities? With new transportation options (ride sharing, better bike infra, soon self driving cars) garages are less necessary, with new meal delivery options kitchens are less necessary, and with the sharing economy we can cut down on storage space. I'd like to see some new creative approaches to modern US family housing.