“If you’re making 200k, you’re in the top 5% of earners for any of those areas. That means you should be able to afford the top 5% of homes.”
Permabear, the fallacy of your argument has been exposed. Consider Rancho Santa Fe: average income – $245,631, median home sale price – $2,585,000.
You have neglected to consider the segment of buyers that have substantial downpayments. While the absolute numbers are small, these buyers form a significant percentage of the buyers of homes $1 million and up.
