Rent and property cost are certainly a function of supply and demand... and specifically in SF that is brutal. But also makes you wonder why the homeless flock there (much like Portland?) For the people that the story is focusing on, I'm not sure that any housing would be inexpensive enough to address their needs.
At the same time, states noted above also have an issue with taxes (property and state) that are a concern for the working poor. Those taxes are a function of spending (not prop value) and just one more concern (NY, NJ, CA).
Certainly a complex problem and 30 minutes from Stossel is just gets the tip of the issue.