I have a question which assumes the accuracy of two links (here, for median income, and here, for median home price, both of which are in California). I'm going to make an erroneous assumption and state that the median income in California is actually what the 4 person household makes (see the link and table); meaning about $76,000. I'm admitting that this isn't the actual true median though (more than likely, based averages, it would be closer to $63,000 to $65,000).
Considering that the median home price in California is $400,000 and the median income is $76,000, what sustains this housing market in California (if it's sustainable)? Asked differently, why shouldn't anyone be shorting the California housing market, as, unless incomes increase, this appears unsustainable (home prices are at least
5x the price of incomes and from the articles I've read, they're growing in cost; good mortgage advisors generally suggest a person only buy a house
3x their income -
4x their income is generally seen as questionable)?
Forgot to mention, this question is partially based on these criteria for buying a home.