In Phoenix, there are also rich people and poor people, but not the stark contrast of Silicon Valley. Fewer billionaires, I think and also the neighborhoods are so vast and more or less homogeneous in tract size that you don't really notice wealth disparity. The average family pretty much lives in a house with a yard and 2-car garage, regardless of income. You can get in your car and drive to tony gated communities in Scottsdale and peek over the walls, but who would? You have your job, your two cars, your Harley, and your flatscreen, and life is good.
Maybe California can find a way to build out onto the ocean as was done in Singapore, and relieve the housing pressure a little. God, I'd love to be making the kinds of software engineer salaries that they offer out there, but the housing -- yikes!