Silicon Valley communities including Los Altos, Palo Alto, Menlo Park, Atherton, Woodside, Hillsborough, Cupertino, Saratoga, Los Gatos -- they all have long-term house rentals in that range and much higher.
A friend owns an older unrenovated 4 bedroom ranch in Los Altos that he rents out for $10K/month. Something like this (but not this):
https://www.zillow.com/homes/1260-Pa...,-CA-94024_rb/
Why wouldn't someone purchase instead? Some people just can't come up with the downpayment on a $4 Million for a house.
https://www.zillow.com/homes/1551-Ju...,-CA-94024_rb/