I'm really, really curious how you got your numbers.

I just 'did the math' in Redfin's mortgage calculator on a $990,000 home. The total monthly cost came out to $6,495 or $3,247 per person (in a couple). That's almost exactly 1/2 of the take-home (after tax) pay of someone making $120,000 a year in California.

-- Monthly expenses on a $990k house in SF --

Principal and Interest: $4,185

Property Taxes: $1,015

HOA Dues: $551

Homeowners' Insurance: $183

Mortgage Insurance: $561

1) That's far more than your $2,000 per person number

2) I'm no expert but, throwing 50% of your income at a mortgage seems foolish. So whether or not you can afford it, depends on your definition of "afford"