A 4-bedroom house bought in the 70s is far more affordable than a 1-bedroom condo bought today, which creates a situation where no one can afford to move out of their homes. It&#x27;s a massive tax benefit for themselves, their children, and grandchildren, that instantly and irrevocably goes away when they sell the house. No matter how high the market drives prices there is little incentive to sell.<p>I don&#x27;t know how much this has to do with the shortage of supply in the bay area but I&#x27;d be very surprised if it has &quot;nothing to do&quot; with it.