"Relatively" being the key word. Real estate pricing anywhere on the Penninsula is out of control, but the alternative is commuting from the east bay or wayyyy far south (Morgan Hill kind of area).
Lucky him if he can afford to buy before he's even started working... I'll be renting for a few more years at least.
^I think his plan is to buy 3 bedrooms and rent one or two out. While he interned this summer he rented a 3-bedroom apartment and sub-rented out the other two bedrooms to other Google interns. I guess that's pretty common.