Prices of real estate

I just got back from Los Angeles, California, had a really nice time as usual but I still can not believe the prices of the homes there compared to here in Columbus, Ohio. My sister lives in a fairly nice neighborhood and the prices are just crazy. I think the same home in my area would sell for less than $200 thousand but there they are selling for around $500 thousand. I don't see how people could afford to pay that on a middle class income? No wonder so many people are losing their homes. It's sad when you have to move people in with you just so you can pay for your home or have all your family living in a small 3 bedroom home just so you have a place to live because the rentals out there are very expensive also.