Sure, and then the realization that cities need to pay for things like infrastructure and transit to support their growing (and increasingly dense) population, and either way a a possibly unlivable situation develops. High taxes/high rents, or low taxes but zero infrastructure or support. No US city has managed to figure out the formula. That low tax situation has only lasted because there was previously no need for real serious spending.
Wouldn't the cost of infrastructure scale with the increased tax revenue from the increased population? I would also assume that infrastructure is actually cheaper per capita if population density increases, which would imply lower tax rates.
It depends on how the infrastructure is funded. In some states, that budget is based on property taxes. In some states, income and state taxes. It's not really a one size fits all problem. In some cases, the money is there but the voter will is not because there's a real "tax is theft" movement in many states.
That's not true, the largest slices of California's state budget goes to healthcare, with education next in line. Pensions are 3rd and account for 18% of the state budget. I'm not denying pensions aren't a significant chunk, but the "your taxes do nothing" argument is getting pretty old.
My point remains...you're not paying for infrastructure.
You also missed the chicken/egg...high taxes a component of the high cost of living that causes people to move in the first place.
California's poverty rate has risen with the population...the poor are moving in and they are not impacted by most tax measures, so they have no reason to oppose them.
Taxes are just one side of the same coin, the high cost of living is really just a density issue. Lots of high paying jobs, lots of Nimby building practices and little density and transit investment. Tokyo is a city of 20 million people yet is far more affordable and even has higher taxes.
California didn't build to support it's population. If these secondary cities make the same mistake, they too will be high cost/unlivable places.