SunCal Cos EVP Randy Teteak says that live-work is actually a small percentage of the housing market. Buyers still want single-family housing, and they're still willing to commute to get to work. That's what counts as affordable housing in California, he notes. Randy adds that he's bullish on Northern California—as well as Washington, DC—not only because those regions are creating jobs, because they also have high barriers to entry. Once you're in, the deals are going to be sweeter. "We like markets where the impediment to development is high," he says.