Meanwhile new grad with a fancy degree from Northwestern, you can afford the rent, so they get to live in LA.
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I understand what you're saying. While many people would like to live in California, there's only so much room. At the same time I have a hard time swallowing the idea that "These people are addicted to LA" if they grew up there and spent their whole lives there.
The US coasts have not been building enough new housing to keep up with demand [0] for the past several decades. We treat housing like an investment and restrict supply to increase property value to the point that it is difficult for people to find places they can afford to live.
Some people may have to leave the town where they grew up to find somewhere to live and work. Some people may have shown up in LA with unrealistic dreams and should probably leave.
I only ask that you don't discount the role housing policy has played in creating this situation. The issue is more nuanced than "people addicted to California."
[0] - https://www.brookings.edu/research/cost-crowding-or-commutin...