Housing in California

I am shocked at the prices of houses in California. I was born in a little city about 50 miles east of Los Angeles and growing up I knew it was an average priced town. Nicer than Ontario, not as nice Claremont. Our house back then was an expensive house. My parents paid a whopping $225,000 for it in 1979 but it was a very large house. There were 2 dining rooms (one formal), 2 living rooms (one formal), 4 bedrooms and a huge family room on .75 acres. I lived in my 3rd back yard among the fruit trees. My favorite trees weren't even ours but our neighbor's that hung over the far south wall (peach and plum). I was lucky yet we didn't have the "nicest" house on the block by far.

I just found out that my aunt sold her house. She has lived in that house more than 30 years. It a mainstay of my youth. It is a small house but she had an addition built when I was 5 and more upgrades over the years. It still is about 2,000 sq ft after all the additions (and no pool) but it sold for $475,000. My cousins and his new wife just bought a condo for $290,000 and it was a mere 1600 sq ft. What is going on? My cousin is YOUNG like 22 or 24 tops. His wife just graduated from college and now they are strapped with a house payment that size.

I know you are thinking, wow those must be nice houses but I tell you the truth: They are ordinary normal suburbs. In my aunt's case her suburb has been around forever and cars are parked all along the street 24/7 and the neighbor's house is right on top on hers. Single story homes too. Nothing fancy. So why has California gone bezerk? Do you have any idea how much house $475,000 would buy in Kansas? Even in Texas it would buy a lot. I think the world has officially gone mad.