I wonder if that is what is happening in California. Letting the prime cities go to hell, then quietly buying the good properties at fire-sale prices. Nice mid- to long-term investments. After a few years, sweep the riff-raff into the bay and ‘Tadaa!’ Instant gold mines, up and down the coast.
Everyone thought "What the hell???"...but the point you mentioned sprang to mind.
And it may be that people like Gavin Newsom aren't even in on the joke. He's just a tool.