in 2019, Yihai’s California friend (mid-40’s) bought a USD 1.85M home for his family of three. Household income is not that high — Apple engineer + accountant wife.

I guess they have no choice.

20% down payment = 370k. Mortgage installment would be $7k/month. Yihai used the term “mortgage slave”… At this price level, home ownership is impractical for many residents. Many would need to stay rented.

Looking at tri-state, at 700k price level, I would still consider it beyond me. So lease-spread is the way to go. Otherwise, consider condos.

Nirav pointed out that because of sky-high property costs, general retail prices will go up, same as the price differential in city center vs suburbs.