RE: People are willing to pay $400K more than average to buy a home in Hawaii, the highest in the nation.
So, why were people willing to pay millions to live in small apartments in San Francisco and Manhattan?
“So, why were people willing to pay millions to live in small apartments in San Francisco and Manhattan?”
If you believe in the free market, it is because people believe it is worth it to pay $1 million to live there even when they could save almost all of that moving a few towns over.
It is all about jobs. Get a job in tech in San Fran or in finance in NYC and it is well worth paying the extra rent.