Earlier quoted context omitted.
So demand massivley outstrips supply. If people aren't living in such horrible circumstances (crime, homelessness, drug abuse), why is demand so high that houses are unaffordable?
I don't know if you've been in California recently, but in the East Bay at least a large number of small businesses have closed down and formerly vibrant places now look like homeless encampments. I used to feel comfortable taking out my phone even after dark on BART, now I don't. The economy might still be chugging along but it's not chugging along on the back of the big cities with ultra liberal takes on crime/home…
Some cities are better at mixing commercial and residential real estate so you feel this effect less. Downtown Chicago always felt eerie to me on nights and weekends. Everything is just closed and there are very few people around. Manhattan is less like this. (There was a time when I would leave work between 11pm and 2am. The bike ride down 2nd Ave was always chaos. The city never sleeps.) I haven't spent a ton of time in San Francisco, but it strikes be as being closer to Chicago than Manhattan. After work, everyone is out in the neighborhoods.
In my non-expert opinion, people in California go to bed earlier than in New York. I feel like everyone thinks they need to be up for work at 5am to "beat the traffic" and be in the office for calls at 9am New York time. This means they are in bed 9pm. Meanwhile, you can stay out until midnight in New York and be sentient again for the same 9am call.