This is objectively not true [1] and has the same sort of arrogance that frustrates people who live in other areas of the state. Is the cost of living ridiculous? Absolutely, but the higher-than-average salaries at least help compensate.
Consider, for example, San Diego [2], which is considered the worst city for long term wealth accumulation in the entire USA.
1. http://www.trulia.com/home_prices/California/ 2. http://www.sandiegouniontribune.com/news/2015/oct/26/san-die...