There are many areas in Southern California where developers have recently been able to build SFR housing tracts with prices under $500,000 and still make an acceptable profit. Since the cost of labor and material is basically the same, regardless of what part of California the project is in, then the cost of land is the variable that makes a new 1200 + square foot home sell for well under $500K in some parts of Southern California (Palmdale/Lancaster, San Bernardino, Riverside) and over $1,000,000 in glendale and most of the Greater Los Angeles metropolitan area. The supply of buildable land and employment opportunities are the major causes of this disparity in land cost. The long commutes to employment centers and the resulting traffic congestion are obviously a major reason why many home buyers opted to buy in the greater metropolitan high price areas and fell prey to the pitfalls of teaser rates, stated income qualifying, and negatively amortizing adjustable rate loans. The result was a dream turned into a nightmare. What can government and/or the real estate industry do to make living in the outlying areas less stressful by eliminating the strain of commuting to employment centers? Is there any way that land in metropolitan areas can be made available to developers at the same price as in the outlying areas? Government subsidies? Eminent domain in blighted areas? c, Creating financial incentives for industry to create living wage jobs in new communities, thereby eliminating the need for long commutes? d. Company towns (many U.S. manufacturers are using this model in foreign countries they have facilities in)?