At a certain point that stops being feasible if the cost of living keeps increasing and additionally you're taxed at the highest rates.
Also from an economic perspective, people will move close to where the jobs are. You hear a lot about startups hiring in the Bay Area but almost never hear the big incumbent businesses expanding there. Quite the opposite.
As with any macro-economic trend, it would pass years until you see the effects of these things, but I do believe that this doesn't play well for California's economy in the long-term.
Fortunately for California, there is more than Bay Area, so it's also possible that this is just a phenomenon applicable to the economic behavior and impact of the tech industry and tech employees.
shehasapoint