"San Francisco doesn't allow new construction." as the other poster said, so you're going to buy up the $1m stock of houses. I also think this "competition" is

"San Francisco doesn't allow new construction." as the other poster said, so you're going to buy up the $1m stock of houses. I also think this "competition" is artificial as a lot of people are signing 30 year mortgages but I highly doubt their salaries will continue growing or even staying at the level they're at now. Most folks aren't spending within their means.