You're right, the thing limiting the value is not demand - there are more than enough faculty and high-level staff that want to live there. The thing limiting

You're right, the thing limiting the value is not demand - there are more than enough faculty and high-level staff that want to live there. The thing limiting the value is the other restrictions that Stanford imposes on these houses - namely they essentially control the price the houses sell for because they all have to be financed through a Stanford-controlled lending program.