[baby]

This is so absurd, I left SF last month and I still can't fathom why anyone would spend that much money to get a house there. I guess if you are stuck there because of work, and work pays really well? But I can't see any other reason why you would pay that much money for a place that is not that nice.

[teacpde]

It is less logical, but when you see all your peers here spend that kind of money for houses, you start to question less. Also, it is a market, which is controlled by supply and demand dynamics.

[octoberfranklin]

No, it is a market whose supply is controlled by planning and zoning codes.

There is nothing supply-and-demand about improved real estate.

Farmland, maybe.

[shadowgovt]

... which, of course, include rampant speculation and wild assumptions about return on investment based on past history that may or may not reflect future performance.