Bay area housing prices are created by prop 13 incentivizing people not to sell houses (reducing supply) and creating low property taxes (reducing cost), very s

Bay area housing prices are created by prop 13 incentivizing people not to sell houses (reducing supply) and creating low property taxes (reducing cost), very strong NIMBY blocking of development (reducing supply), some foreign money investing in the area (increasing demand) and a tech economic boom (increasing demand). Mortgage rates do not cause it as much, a percentage point increase in a typical bay area mortgage will only add ~$300/mo to a 560k house mortgage. The mortgage interest deduction reduces it by your tax rate. SF is an area where people rather have an economic recession vs growth because the system can't handle growth.