I think you have listed many of the right reasons.. I think the primary reason is the affordability issue; not discrimination, not bad-records etc etc. However, this is not to say that the city should start tackling the issue with municipal dollars. The market will adjust.
How do I (for whatever my opinion is worth,) think we got to 6.6%? Many properties coming on line over the last year were likely conceived at the height of the economy and investment capital was easy to get. If you look at these properties it appears that there was a clear "buy-in" to the concept that everything has to be "upscale" or at least "upper-scale." This makes the project cost more...which will dictate higher rents. Now, just when they are coming on line, the economy is not so great and people either can't or prefer not to pay those rents. Now let's compound the problem. These people may never come back to that market because rates have been so historically low and these people (the $1,000/month crowd) have likely (and hopefully) purchased homes.
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