I don't really see what's wrong with the residents of a town saying "town's full, go away." The properties in CA are expensive because it's a highly desirable place to live. There are other states with open arms welcoming new growth. I don't have a problem with either.
This attitude has led to pretty much everyone I grew up with not being able to afford to live anywhere near where they grew up (or their parents), as well as rising homelessness, declining school population, and an inability to hire teachers, bus drivers or city staff. Also a strong case it is choking innovation in one of the most creative areas in human history.
If you don't build then as people get richer they buy second homes, put homes on Zillow, merge lots into one and your population gradually thins out.
