As someone who owns rentals, I understand how you must feel about the market in CA. The situation is hitting a lot of people very hard–especially young people who are just starting out–and I hope you will find a solution that is in your best interest.
As far as rejoicing over increasing CA property values, I hope people realize that what is great for current homeowners might not be so great for their children and grandchildren–should they end up being priced out of ever owning a home of their own. If we hadn’t invested in property for our kids years ago, this could have happened to them.
Multi-generational living is also becoming more and more prevalent, and may be the way of the future–especially in states like CA.