I thought this quote was particularly interesting:

“In fact, California has brought the housing affordability crisis and the resultant slower growth on itself. California’s strict and bureaucratic land-use regulation has driven the price of developable land through the roof. At the same time, areas with more liberal (yet environmentally sustainable) regulation have managed to preserve housing affordability. Median home prices are about $150,000 in Dallas-Fort Worth and Houston and $175,000 in Atlanta. There are similar, even lower, prices in many other areas.”

If there’s something that will keep California/San Diego housing higher than most other areas, it will be this fact outlined above.