patrick.net

You're such a pessimist.

This is excessive, in light of 3% background inflation.

In real terms, I think 17% per year over the next 20 years is to be expected. Since (1.17)^20 = 23.105, that means the typical $850K home will be worth $19.64 million in real terms in 2033. Project further out to 2053, and you're looking at $453.8 million for that home.

I can't see any holes in this reasoning. Certainly prices will not go down.

APOCALYPSEFUCK is Comptroller says

If you can't see the rationale for a billion dollar home in our lifetimes, you have no business living indoors.

Exactly right.

For those too dense to understand the value of Bay Area homes, there is always Stockton, where $350 million will get you a 3+2.