RelativeLayout is taking fullscreen for wrap_content

For those looking for a solution to this, like I did, you can use FrameLayout instead of RelativeLayout.

Then you can set the gravity the intended object to bottom right as below

<TextView
    android:layout_gravity="bottom|right"
    android:text="FOOBARZ"
    android:layout_height="wrap_content"
    android:layout_width="wrap_content">
</TextView>

From the RelativeLayout doc:

Class Overview

A Layout where the positions of the children can be described in relation to each other or to the parent.

Note that you cannot have a circular dependency between the size of the RelativeLayout and the position of its children. For example, you cannot have a RelativeLayout whose height is set to WRAP_CONTENT and a child set to ALIGN_PARENT_BOTTOM

Class documentation

Which is exactly your case. RelativeLayout can not do that.

You have set the RelativeLayout to "wrap_content" and the TextView to android:layout_alignParentBottom="true", so it automatically tries to stretch the RelativeLayout to the bottom. Don't use such dependencies with Relative Layout, as it can count as "circular dependencies".

From the docs for RelativeLayout:

Note that you cannot have a circular dependency between the size of the RelativeLayout and the position of its children. For example, you cannot have a RelativeLayout whose height is set to WRAP_CONTENT and a child set to ALIGN_PARENT_BOTTOM.

Try to align your TextView to something other than the parent RelativeLayout, but watch out for this problem as well:
Circular dependencies, need some help with exact code

Alternatively, try to add more sophisticated inner layouts.