Buyers in a high priced area are taking on way more risk then people realize. If you have $200K and buy a $1M dollar apartment, you just put 500% of your net worth into one asset. If prices fall by 20%, you just lost all of your money. Hot markets like NYC and SF have inflated prices propped up by high incomes, restrictive building practices, low interest rates, and high desirability. You can't assume all of these factors will remain forever.