How Will the Facebook IPO Affect Northern California Housing Markets?

Permit me to pose a hypothetical question.  Suppose that a new successful company called "Facebook" goes public and this creates at least 1,000 new multi-millionares.  If each of these folks lives in the greater San Francisco area, will real estate professionals and real estate scholars see an impact on local housing markets?   This article examines this question.   At the high end of the market, there will certainly be more aggressive bidding for homes that sell for more than $2 million dollars.  The price effect caused by this increase in wealth due to the Facebook IPO will be larger because of the difficulty of building new housing in many parts of the San Francisco area.  As I have argued before, liberal home owning communities block new development.  This means that as demand increases and supply is inelastic that prices will rise sharply at the high end and this should displace "regular folks" to bid up the price of upper-middle class homes and so on.  Foreclosures in the San Fran area will fall thanks to this IPO!