Workers have a rough time in California, and the new economy has not been kind to them. Callie is an 'at will' state, with no maternity benefits, so companies can do anything they want. The rich cities such as Palo Alto do things to keep workers out. I know a person doing the major Google construction and they are severely limited in how much they can build because they can't get workers. There's no place to live!
In the rich city it's all small cottages, and no new high density is allowed. Over the road in East Palo Alto they haul out the bodies every morning. This is where the 'Palo Alto Method' gets into trouble. Musk can design till the cows come home, but he wants to get into the 'mucky' stuff.