[tims33]

But it is also the largest state with the most expensive home so on a $ weighted basis it is a big chunk of the national total.

[bigbadfeline]

Good point. Similar to how the share price of a company is meaningless, total capitalization is the only useful metric. Similarly, investors have gone to great expenses to commit their money into 19% of California's housing, greater expenses than any other state, even when considered on per-capita basis.

To understand the meaning of this, consider that supply/demand curves are naturally non-linear and even 5% increase in demand can double the prices.