There is nothing people hate more than the hand that feeds them. See also Brexit, the Southern US's attitude to the federal government.
People associate the US South with being poor. And it's true in that they get more federal dollars then pay, mostly from welfare. However the poverty rate in California beats out out every other state in the country.
If California keeps on its trend how long until jokes once about Mississippi or Alabama will instead have California as the punch line?
In much of the south it’s lack of good jobs.
The housing problem is easier to fix… not that cali is fixing it.
I encourage everyone to experience the Mississippi boonies filled with single wides and trash barrels in the back at least once in their lives. Then go check out poor places in California, just see what is really like for yourself.