> Housing is interesting because it's one of the few things we buy that is priced mostly around our ability to pay for it rather than the value of what we are buying.
No, its not. Real estate -- including housing -- is very much driven by value, and for most real estate -- and definitely housing -- and key component of value is location.
> That's why in SF it seems that housing prices rise in lock step with wages in the dominant industry (tech).
Convenience to work of a given pay is a key component of the value of housing; its not priced according to what the buyer can pay, its priced according to value, and the buyers are the ones who can pay that value.
