> You're failing to explain what dictates the price the market will bear.

Most people like to live in the nicest place they can afford. This is a force pulling prices upward when many people with excess cash are competing for a limited supply of homes. Its why you'll pay more for the same size property in a wealthy neighborhood.

> Why are prices for an apartment in SF only 3k/mo instead of 30k?

Because some people in SF can only afford 3K/month. But if you added 3k/month to literally everyone's income, that number would increase.

(In case you're wondering why the many people with more than 3k/month don't crowd those people out: the wealthy depend on those 3k/month people for labor. At least for now.)