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But the housing market in California is arguably distorted; it doesn't actually reflect "free market" economics. So I think you're being a bit petulant trying to claim it's just about what the market will bear.

The market only bears it because the government (federal, state, and/or local) in some cases has arguably helped place realty companies and others in a position where they essentially hold a monopoly over vast areas of land and housing.

California also has a unique problem in the form of proposition 13:

http://www.nber.org/digest/apr05/w11108.html

http://www.bloomberg.com/news/2013-05-19/jerry-brown-s-last-...

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