We discuss some of the drivers for the large disparity in Real Estate prices in the United States in this video, and show how much inefficiencies actually exist in the U.S. Real Estate Market.
Modern Technology allows for employees to live anywhere in the world. It is amazing how much house $300k buys you in most of the United States versus the two coasts. The Real Estate arbitrage should kick in with companies wanting to lower their costs by allowing more commuting and working remotely. It just makes too much sense not to gain more traction as companies become more sophisticated and evolved with modern societal needs and scarce environmental resources from a geography standpoint.
There is nothing sexy about making $150k in San Francisco, and not being able to afford a decent home. The Tech and other large companies need to start thinking outside the box with regard to employees and Real Estate demands.