California's Reliance On Real Estate May Be Its Downfall

"The Anderson Forecast, best known nationally for having accurately predicted the 2001 recession, has long argued that real estate prices in California and the U.S. are unsustainable partly because property values have climbed far faster than personal income.

...Real estate has become central to California's economy. Real estate-related jobs account for about 10% of private sector jobs in the state, according to the Anderson Forecast, and are growing rapidly.

...What's more, there are 423,000 licensed real estate agents and brokers in the state now, up 25% from 2003. That number represents 2% of all working-age Californians."