This is wrong on so many levels.
1. "Qualified" supply means experience. That means you arent hiring 22yos working at subsistence salaries shacking up with three buddies in a double-bunk apartment. It means you have to pay a "qualified person salary." I'm a qualified person, I have 18yrs experience at top firms. But guess what...175k/yr in SF/SV doesnt cut it, it gets you a 1br apt. You cant raise 2 kids in a 1br apartment. Where would the kids sleep? in the bathroom? on the dining table? Also, option compensation doesnt count, as I cant pay rent with options.
2. If you want "qualified talent" perhaps SF/SV would not age discriminate. But they do. They want young people willing to earn so little they are forced into having 3 roommates.
3. There are tons of qualified workers. Most of us dont want to move to SF/SV because the prevailing wage is too low. Pay the right wage (i.e., perhaps something that one can raise a family on) and your "shortage will magically disappear.
>> Qualified supply is nowhere close to matching demand.
I think what this typically means is: we're looking for talented developers willing to earn so littler they are forced to bunk with multiple roommates and/or live in roach infested apartments, something only desperate overseas workers are willing to do.