BM... Yea, but where the hell do they go? Even the homes up in the Santa Rosa area (50 miles north of San Francisco) are priced around $700,000(+) .
If I was one of those middle class San Franciscans and owned a SF home, I'd sell out and run to a city/town where you could purchase a decent $300,000 home with a part of that $1,200,000 and sit back and watch the clouds roll by.
I think that's happening in Las Vegas right now. Filling up with people leaving California.
And when the San Andreas strikes .... it's gonna be another migration in a different direction .... "Go east, young man! Go east!"