This form of analysis is not adequate to explain housing prices. What is going on is a concentration of capital in high tech companies like Apple, Google, and Microsoft. There is a ‘trickle down’ of capital as these companies hire employees and they spend their high salaries. More importantly are startup companies getting money through IPO, and angel investors. There is a ‘center’ and ‘periphery’ to capital as real estate prices create centers in cities like San Francisco, Palo Alto, and San Jose. Far flung places with no tech workers or companies are the periphery where real estate is cheap. A better analysis would simply be to compare a company’s capital on a map, and look at the related housing prices. What this would show is that California has become a ‘company town’ and its housing prices correspond almost directly with company net worth.