[CatoRenasci]

Don't neglect the effect of low interest rates on the equation. What's worth more today at very low rates would be worth substantially less at 10% interest rates, let alone the 18% we saw in the Carter era. Do the math. Also consider the general availability of money to borrow. Lenders won't lend if their rates of return (interest is the cost of money plus the risk factor) don't work out.

My view is that LA is a bubble waiting to happen. Of course, I live in a similar East Coast bubble.

[Oldeconomybuyer]

I agree with the points in #15.

As someone old enough to remember 12% mortgage rates, the impact of interest rates on RE value is significant.