Demand is a primary factor, but you also need income.
I know many young people who would like their own place, but live at home with Mom and Dad because they lack the income.
Income = wages. The median family income is $51K/year. The question is, how much is a family willing to spend on rent, before they decide to pack up and leave San Diego?
While people will pay up to 50% of income on a mortgage, because they believe housing will go up 20% annually, they will *not* pay that much on rent.
My guess: if rents are more than 30% of income, I will move in with some friends or pack up and leave.
