I'll use Thomas Sowell's example: People like to live by water, on a shore.
There is only X shoreline.
There are two ways to apportion that shoreline.
1) money: let people buy and sell it, or
2) you can divide it up, and give a piece to everyone; of course, this results in uselessly small pieces (and you have to forbid transfers or you end up with #1), complications with inheritance (is it heritable? How do you deal with death? Marriage?)
The problem with #1 is that as the resource is finite, the prices will become very, very high.
San Francisco is a wonderful location but is extraordinarily geographically constrained. Which do you want: a dictatorship that controls everything and allocates places to people according to what they think is fair today, or a "free" market where prices skyrocket to their value and prevent any but the super-wealthy from living there?
You can't have both, as I suspect that the inefficiencies of trying to chart a middle course make it the worst possible choice.