the big picture is that coastal California will lose tech jobs because young techies cannot afford any decent homes especially if prices stay high. That will have a devastating negative long term impact on California’s economy.

I’m not so sure about that. Young techies are the only people that might actually be *able* to buy a house these days! Also, young techies are often ok (or prefer) to live in a condo. Sure, they’ll get married, have kids, and want a house, but that’s no longer the same 25 year old techie earning 80-100K with money to burn.

Besides, once people with money can’t afford to buy houses, then nobody will be able to sell their houses at those inflated prices. Eventually, an equilibrium will be reached.