While there is a floor cost because of supply and demand, there are several costs associated with house prices in California that does not have to do with supply and demand.

Democrats, especially when they have a large control of an area, are known to enact all sorts of policies that artificially raise the costs of homes and thereby primarily hurt the poor. They have heavy environmental regulations that add significant costs to developers, who thereby pass that cost onto the consumer. They have added several layers of ’safety’ regulations that also add significant costs to developers, who again pass that cost onto the consumer. In addition to these, they have open land space regulations that limit the supply, again thereby increasing cost for the same demand. They also have failed affordable housing programs and so forth. Or take the regulations that limit how high a condo complex can be built, that also decreases supply and increases costs. In addition, Democrats in California sued so many condo manufactures in the early 90’s that many left that field altogether, at whose expense, at the poor person who could use a condo to enter into the home market, but is now left with much fewer options. This is all without even mentioning rent control laws and so forth, that all multiply this problem.

Just compare, say San Francisco house prices with say, Florida, or Texas, and so forth. You have to be a millionaire in some of these high democratic areas just to afford a two-bedroom home.

While there is a floor price because California is so crowded, so beautiful and so prosperous, there is still a much higher percentage initiated by Sacramento that must not be ignored.