“Lastly, how does climate play into the fundamentals? Most places in the US have crummy waether compared to San Diego. That said, shouldn’t we pay a premium for year around good weather”
No, In incomes should support prices. That being said people with higher incomes tend to gravitate toward areas with better weather thus creating higher property value as well as rental prices.
A premium would suggest to me that the cost for a mortgage payment is much higher than rent.
Basically better weather should not drive people to pay a larger portion of their salary.
