A friend of mine once told me "Yes, the price of a house here is extremely expensive. But no matter what happens the prices might level off for a while, but they always resume and go up".

He told me that in 1994 and it has been true. Even with massive apple layoffs in 1995. And when the bubble burst in 2000. and the housing crisis.

I think people will move out of the bay area. But I think they will do it the way they always have - sell their house, cash out and retire elsewhere. The others will sit on their low prop 13 ponzi taxes and stay. And people will take their place because elsewhere winter sucks and humidity sucks and rain sucks and salaries suck and yes for some even their traffic sucks.