Pacific Heights is indeed one of the most desirable neighboors, and is very much non-surburban in its nature.

but ...

The current situation in uber-expensive real-estate markets when it comes to high-end housing should not be over-interpreted as having more to say about what most Americans want from the places where they live.

Pacific Heights current situation is also very similar to wealthy old neighborhoods in cities across Europe. London at the very least is full of such examples.