Actually, cost of housing and transportation go hand in hand. I personally know several people who work in the Financial District in SF but who live outside of Sacramento because of the cost of housing.
'Course that makes for a 2 - 2 1/2 hour commute morning and evening.
I would never buy a house here.
Much of this is caused by the enviro-whackos and the "shut the door behind me" crowd (something like 1/2 of all the land in the Bay Area is untouchable). The only new construction I've seen around here is compact dual-use condo units (stores on the bottom floor, condos above).
But who wants to pay 380k for a two bedroom condo in a shopping mall?
You won't find a 2 bdr condo for 380k in SF. The junior one bedroom condos with (with parking) across the street from my apartment complex go for around 425,000....for a glorified studio apartment!!