> Everything I see seems to indicate that the price of housing expands to fill the amount of money available. This applies to many many other areas too. The p

> Everything I see seems to indicate that the price of housing expands to fill the amount of money available. This applies to many many other areas too. The price of anything in short supply expands as far as possible to change consumer surplus into producer surplus. If it were apple juice in short supply more people would start selling apple juice and eventually the price would fall. Presumably in Palo Alto you can't just throw up more flats/houses in 6 months and put them up for sale though