[jseliger]

Rent is absolutely absurd. Most big cities have this problem, but its especially pronounced in SF (probably moreso than everywhere but NYC).

I keep posting variations on this, but this link is relevant here: http://www.slate.com/articles/business/moneybox/2012/05/face... . "Rent is absolutely absurd" because of basic economics at work: SF is a desirable place to live in many respects, but it's virtually impossible to build new housing there for reasons discussed at the link. In the face of exploding demand and constant supply, prices rise. For more on this, see The Rent is Too Damn High: http://www.amazon.com/The-Rent-Damn-High-ebook/dp/B0078XGJXO. Most big cities have this problem, as you note, and yet most commentators don't discuss the obvious connection between supply limits and prices, per my essay here: https://jseliger.wordpress.com/2013/04/08/connecting-the-dot... .

Regular people move from SF and places like it to the sunbelt, where development is easy and real estate prices more reasonable, and the people who have the money and/or need to be in SF stay/move there.