And trust me, I can affirm this first hand.
The house I grew up in is in the LA area, and my parents sold it in 1975 for around $35,000. 2 bedroom, 1 bath bungalow at less then 800 square feet.
The market price today? Just under $435k.
And no, I am not kidding.
17510 Martha St, Encino, CA 91316 - Zillow
And if you want to rent it, be prepared to shell out around $2,000 a month. Driving around California, you often see "Affordable Housing" going for $650k+. In Texas, I saw the same sized homes on bigger lots for 1/10 that price.