So, using that logic, if someone moves out of a desirable area of California, and cash out the equity in their appreciated home (or move out of an expensive rental), what would happen?

If they move to, say DFW, they are going to pay much less for a house or spend less on an apartment.

A conclusion would be they would be the ones to have the funds to pay a moving company to make the move.

Yet this goes counter to the facts. U-Haul truck rental fees moving out of California are twice what they are moving in. So, this is not the driver (no pun intended.)