Those returns can't continue. When people spend 30% of their income on housing and housing doubles in cost, it means they'll now have to spend 60% on housing.

Those returns can't continue. When people spend 30% of their income on housing and housing doubles in cost, it means they'll now have to spend 60% on housing. From there it simply can't double again, not without coping strategies exceeding anything reasonable (1 family per room, families living in garages, commutes that exceed 6 hours a day). Every coping strategy has it's limit. You can't commute more hours than there are in the day. YOu can't have more than 3 people living per room (at least not legally). Once you move in with your parents, you can't do it again. etc. I think we've reached that limit in the bayarea (at least the core bay area) so we can look forward to housing returns of roughly inflation. Even with the severe dystopian restriction on supply, it will just force more and more people out of the bay area. Maybe some of the outskirt areas still have room to go up, like Tracy, antioch, brentwood, etc. some of those places haven't yet been gentrified.