Not to mention the fact that the real estate market in the bay area is one of the most expensive in the country now, due to the tech boom. I think my parents bought their house for $50 or $60K in the 60s, and it is a modest, middle class home and they've never renovated or upgraded it. But it's probably worth more than a million dollars now. I have a decent middle class job, but I could never afford to buy a home in my hometown today! (I'm from Oakland, right next to Alameda, but prices have sky rocketed all over the bay.)From reading the banruptcy laws of CA, his home would have been worth much more than the amount allowed.
Somewhere I believe many of us have heard that in a bankruptcy you get to keep your house. Unfortunately, that is not necessarily the case. In my state, one can only have so much equity in the house to keep it! Believe me when I say the amount is so low, in today's market, it would be a junker.
So the value of a normal, not fancy family home has skyrocketed, even if the home itself hasn't been changed or renovated.