Because it is amazing to live downtown where I can walk to dozens of different great restaurants and shops, work and anywhere else I need to go on the average day. If I have kids they can get around easily without needing to wait until they turn 16 and can get a drivers license.

City life isn't everyone's preference but it is clearly desirable by many people. $1M is a huge price tag but if you can afford it and you want to live in the city then you will pay it if you need to. Many people do.

The only hope is that with supply increasing the price tag will start dropping. Additionally to dropping price of current stock hopefully builders will start targeting lower pricepoints as well. (Right now most of the new condos are targeted at more "luxury" audience because it is more profitable, now that the market has been saturated other markets will start to be addressed.)

I'm just waiting for the bubble to pop.

Because they're idiot hipsters who want to live in trendy places.