Can a couple making $300,000 a year afford a house

I am a portfolio manager working at a bank and making 300,000 a year (100,000 after taxes and saving) with my wife, and she is a lawyer making an equivalent amount.<br><br>We have done very well for ourselves in life, but housing prices in our area (in northern California) are ridiculously high. We have a good amount of money saved up (500,000) but I don't see how we can afford a house with 3 bedrooms, 2 bathrooms with over a 1,000 sq feet.<br><br>The houses that are around 300,000 are either in the hood or under 500 sq feet with 1 bed room. I don't think that a couple making a combined 300,000 should have to live in the hood.<br><br>What do you guys thing about the value we are getting for the home?