When you imagine a $2 million house, it’s probably big and fancy. Well, here’s what that kind of money gets you in a “middle class” suburb in the San Francisco Bay Area:

The house is just what it looks like: An ordinary 3-bedroom home. And it sold for $2.23 million in December 2021. This is the sort of astronomical price that has investors wondering if housing prices will crash like they did in 2007/2008. We are certainly hearing echoes of the housing bubble. In the five years before the housing crash, US homes prices soared 60%, according to the S&P/Case-Schiller Home Price Index. In the past five years, housing prices have soared 51%. The key difference is: This time there is no concrete catalyst to push housing prices lower.

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