“I also know someone that makes $90k has that much saved up in cash and cannot afford to buy a new SFH in San Diego. ”

TK, why the insistence on buying new? There are plenty of older homes in better locations that your friend could buy with a monthly nut cheaper than renting after deductions. The other option is to buy a new home at an affordable price but in a further out location and deal with the longer commute. Just because one buyer cannot buy exactly what they want where they want it does not mean there are not plenty of options available to a buyer who is willing to make a few compromises.