I think Austin is better about building too, meanwhile in the Bay Area they just rejected units desperately needed in the tenderloin because they might become a "tech dorm".
Scroll to the bottom to "tax history" to see how this can be. Despite the value of the house going to the moon the previous owner was just sitting on a decade old assessment with no pressure to sell.
Vancouver BC might be in the same range now, where things like this show up for 2M CAD. And the conversion rate won't make up for the differences in salaries
I don't think Palo Alto is a great comparison; it's a mixed new/old-money city where a lot of rich people live (with the ultra-rich next door in Menlo Park and Atherton). Compare Austin to something like Fremont, San Jose, or perhaps San Mateo. Sure, those will still be more expensive than Austin, but that $1.7M number is pretty realistic for a nice house in those other cities.
I mean, look at this: https://www.redfin.com/CA/Palo-Alto/3785-Park-Blvd-94306/hom...
I think Austin is better about building too, meanwhile in the Bay Area they just rejected units desperately needed in the tenderloin because they might become a "tech dorm".