Given that people don't want to leave the Bay Area and don't want to be homeless, prices seem to be largely determined by how much firepower the demand side of

Given that people don't want to leave the Bay Area and don't want to be homeless, prices seem to be largely determined by how much firepower the demand side of the equation has. In the absurd scenario of 0% mortgage rates and a 100% LTV interest-only mortgage you could theoretically occupy any house you wanted indefinitely for the price of the property taxes and maintenance (and turn a profit by subleasing to roommates or tourists). 0% is an extreme but how close could we get? Japan is already close to 1%. At which point it costs $10k/year or just a bit more than $800/month for every million in housing cost. It doesn't seem fiscally healthy (but who knows), and if any significant number of people started to consume housing in this way I can't see how we avoid another 2008 style housing collapse in those areas if rates ever rise.