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If California is allowed to look good, then it hurts the credibility of their ideology.
I think there are some criticisms about Californians leaving the state raising housing prices in their own state. That’s just how supply and demand works though when the supply of houses suddenly becomes more limited in your area.
They like to say things along the lines of: “Californians messed up their own state with their high taxes, fled here, are driving all the prices up, and are now trying to bring their fAiLeD PoLiTiCs to the state.” The real answer is that California is such a desirable place to live that there are not enough houses and well paying jobs to go around. People leave the state because of unregulated capitalist pressures, not because of the state’s strong social programs.
It’s not just Californians moving to other states that are driving prices up. Housing prices going up is also caused by private equity firms buying up available properties, a slowdown on building new houses capping supply, people from other states moving, and Not In My Backyard people trying to prevent lower cost housing in their towns since they don’t want the price of their house to ever drop.
Having strong social programs in their own states could actually help mitigate the impact of prices going up for housing as well as for other goods and services. For instance, they could have their own state provided healthcare coverage to help them have guaranteed healthcare. They could have better public transportation systems so they are not so car reliant to get to work. Rent controls in place to mitigate landlords pricing people out of the area. Affordable housing construction. Even things like public utilities could be offered for less by the state for gas, electricity, phone, and internet.