> if luxury units only cost a fraction more to construct Now there is an interesting point. If it's true does it mean that "rich" people are suckers paying 4x

> if luxury units only cost a fraction more to construct Now there is an interesting point. If it's true does it mean that "rich" people are suckers paying 4x more for a house or apartment that cost barely any extra to build? Or that the building codes mean that a "modest" house costs a immodest sum to build. Probably something in between, but it sounds like the risk-reward ratio has been screwed up by the poor incentives in the valley. EDIT: OK, derp... The price difference is obviously because of the location premium.