Given the constrained supply of houses in south bay, you need only a handful of people with 300-400K+ salaries to justify the home prices. For example, today t

Given the constrained supply of houses in south bay, you need only a handful of people with 300-400K+ salaries to justify the home prices. For example, today there are only 44 homes (3+ bed, 2+ bath) in Sunnyvale [1]. That means you need only 44 successful bids to cover entire Sunnyvale market. Now consider number of E5/L5 SWEs in FB/Google and their equivalents across LinkedIn, Microsoft, Apple etc. Also consider double income couples where one person is somewhat junior with a spouse contributing further to gross family income. Also consider other high paying roles in similar companies like Product Manager, Sales etc. There would be thousands of families passing the bar of 300-400K gross annual income. It is in fact a surprise that median price of those 44 homes is less than 1.3M [1], given the proximity of Sunnyvale to all these companies. Home prices are really determined at the margins of income distribution and not at the averages. [1] https://www.redfin.com/city/19457/CA/Sunnyvale/filter/min-beds=3,min-baths=2 https://www.redfin.com/city/19457/CA/Sunnyvale/filter/min-be...