I second surveyor’s opinion. The single biggest factors in housing prices are land availability, regulation and zoning laws. It’s not weather (Seattle and Boston are expensive), and it’s not quality of life (Bakersfield and Barstow, anyone?).
Think of cars: how about if you wanted to buy a Honda, but before buying it, you had to ask every neighbor a mile around if they liked the color of your car, and you had to get the city to approve of your purchase? How about if Honda, before building an Accord, had to wait 5 years to get approvals for it? Do you think they would still sell it to you for $20K?
Edit: for those who like math and finance: google “Zoning’s steep price” to find a pretty interesting old paper about the implicit cost of regulation on home prices.
