The market pricing for explicit costs will be slow moving, for sure. Though I do think we are starting to see the increase in wildfires and urban crime priced in more than it was before as incidences increase. However CA gives you incredible access to nature with all the state and national parks, high sunshine which means less seasonal affective disorder, a higher likelihood to make a very high income. All of those implicit benefits show up in housing prices.

Contrast that to a midwestern city: the winters will probably give you seasonal affective disorder, your income ceiling is lower, you have to drive further or fly for similar access to awe inspiring nature.

IMO it’s a wash. Which taken a step further would show cost of living adjustments as generally bullshit but something businesses will try and do because they’re incentivized to.