Locked supply. Affordable housing. Growing standards of living (or population). Pick two.
If you lock supply and want taxes and wages to grow, you're choosing unaffordable housing. That's San Francisco's current policy choice. Over decades, it filters the poor to San Francisco's "outer boroughs" or onto its streets.
For what it's worth, my friends who lived in San Francisco "took the hint" and moved out when they chose to have kids. They didn't sell their place, however, since the above policy mix together with California's property-tax system strongly disincentivizes that.
Also, note that these cities always happily welcome more offices and businesses. They just don't want to build the housing for those workers to actually live in.
I haven't played OP's game but hopefully it accurately models the plummetting quality of life and rampant homelessness created by doing what you describe in the real world.
You can tell people not to build in your city, just don't expect them to continue investing there if you fuck them over.