&gt; if luxury units only cost a fraction more to construct<p>Now there is an interesting point. If it&#x27;s true does it mean that &quot;rich&quot; people are suckers paying 4x more for a house or apartment that cost barely any extra to build? Or that the building codes mean that a &quot;modest&quot; house costs a immodest sum to build. Probably something in between, but it sounds like the risk-reward ratio has been screwed up by the poor incentives in the valley.<p>EDIT: OK, derp... The price difference is obviously because of the location premium.