Comment by triceratops

> If you give a substantial chunk of the population way higher incomes in the face of only slowly growing supply, then you see skyrocketing prices

Alternatively, skyrocketing home prices meant companies had to offer higher and higher salaries to retain employees in a competitive labor market. If there had been enough housing perhaps salaries wouldn't be as high.

Even police officers and other public employees in the Bay Area make more money than the national median. It's mostly because of the high cost of living, and that is mostly because of expensive housing.