Purely economically motivated decisions are rare. We all have reasons beyond the financial to live wherever, including something as simple as our wife/husband wants to live there.
There is also an inertia bias. Life has to get pretty expensive for many people to want to undergo the hassle of moving cities / states, which includes leaving behind loved ones, and learning everything new (including leisure things like where you like to eat).
Going meta, NYC and California/The Bay Area make the bulk of their tax revenue from very few industries. The tipping point at which they lose a financially significant portion of their tax base, and the flow on affects of that for government workers and the multiplier downstream, has likely been reached.
There is also an inertia bias. Life has to get pretty expensive for many people to want to undergo the hassle of moving cities / states, which includes leaving behind loved ones, and learning everything new (including leisure things like where you like to eat).
Going meta, NYC and California/The Bay Area make the bulk of their tax revenue from very few industries. The tipping point at which they lose a financially significant portion of their tax base, and the flow on affects of that for government workers and the multiplier downstream, has likely been reached.