Peak California?

For this cycle to work, your ecosystem needs three things: big companies that can buy out small companies and produce a cash windfall; rich people who are still hungry to get richer but don’t want to be CEOs any more; and new companies that can survive long enough to raise funding in order to join the other two categories. They’re hard to see because the best companies keep a low profile (a CEO with time to cultivate an image is not a CEO busy writing code or talking to customers), and because reporters are always willing to talk about a company filling the role of Hot New Startup. Since demand is set by the incomes of people who think they’ll be earning that amount of money for the next year, the cash flow characteristics of a city’s businesses determine what effect high real estate prices have.

Source: medium.com