Zoning may have localised effects, but in general house prices are determined by incomes (módulo) interest rates. People pay as much as they can afford to get t

Zoning may have localised effects, but in general house prices are determined by incomes (módulo) interest rates. People pay as much as they can afford to get the best house they can afford. This amount is then translated into house prices by interest rates. 1K/month at 3% gives a wildly different price than at 6%. Compounding this has been the 'funny money' sloshing around the system looking for safe assets to park in - said funny money induced by the liquidity pumped in by low interest rates. SF is pricey because of high engineers' earnings, foreign cash inflows, on a background of low rates.