I believe it is because we have great schools and lots of amenities, many of which are publicly funded.
I think residents agree as they pass school and library bonds, raise money privately for our public schools and value the extra public sector amenities that Palo Alto offers.
Town Square has a series threads questioning the value of money for our public schools and asserting that Palo Alto spends money on frills defined as programs that they don't think necessary.
Are residents stupid to pass parcel taxes and bonds for our schools and raise private money? Are they stupid to value libraries and Children's Theater and other amenities not found in all neighboring communities?
Isn't it reasonable to assume that these investments are a major reason why people want to live here and push housing prices up?
A great community benefits the economy, benefits residents who gladly pay for services and also benefits homeowners who personally don't like all the spending.
Don't you think housing prices would be less if Palo Alto did not have great schools and special amenities?