When it comes to CA real estate it's all relative. You can get a 3BR with ocean views in Morro Bay for about $775K these days, while an equivalent property in Santa Cruz is about $1M. You can also get roughly equivalent (2BR) places in Santa Cruz for about $750-$800K, but they're in the flats, without much of a view.
What I don't understand is why people who aren't tied down to a metro area would buy in CA instead of elsewhere on the Pacific Coast. Equivalent places in Astoria, OR go for $300K. Weather and politics, I guess: you can also get places like that in Crescent City for $300K or even less, but the fog is a lot heavier than the Central CA coastline, it's colder, and the politics are a lot more red-state.
I'd guess that many, maybe even most, people are tied down to a metro area.
Job, social circles, family... after you've been in a place for a few years, many people find it hard to leave.
I think about my own situation. I'm happy at my job, but I could feasibly go remote and still work for the same company. I don't have any family in the area (they're all on the east coast). But my social circles are here. I do have good friends who live elsewhere (somewhat scattered, though), but the thought of "starting over" in that regard just sounds like a hill I don't feel like climbing.
I'm not exactly the type of person you're talking about, because I do want to live in a city. But when I look at Seattle, Portland, LA, San Diego, Honolulu, Austin, Chicago, Boston, NYC, DC... while I could see myself living in some of those places, the thought of actually making that leap gives me pause. I'm nearing 40, and I'm not sure I have the appetite to rebuild the relationships I've been building in the bay area over the last 16 years.
What I don't understand is why people who aren't tied down to a metro area would buy in CA instead of elsewhere on the Pacific Coast. Equivalent places in Astoria, OR go for $300K. Weather and politics, I guess: you can also get places like that in Crescent City for $300K or even less, but the fog is a lot heavier than the Central CA coastline, it's colder, and the politics are a lot more red-state.