Bay Area home prices set new record

"The median price of single-family houses sold in the nine Bay Area counties rose to a record $622,000 in April, up nearly 20 percent from a year earlier."

I remember when the median price for a 900 sf shoebox with a postage stamp sized yard was "only" half a million dollars.

Can someone please explain to me how home prices keep going up while the number of people with jobs keeps going down? I mean, sure... I can totally understand how people who get laid off might want to get into real estate investments (I know I did when I got laid off... your natural reaction is to look for stability in an industry with growth potential... everyone's gotta live somewhere, right?) but I don't understand where they're getting the money to keep buying more and more expensive home if they're not working.

The logical conclusion being that the entire Bay Area is mortgaging their children's college education and eventually the bubble will burst and bottom falls out.

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