re: How do people afford to live in California, esp the minorities and gays?

A lot of the people in that area are DINKs (double income, no kids). They can afford to live in smaller places and have nice cars because the money isn't getting spent on kid-type expenses. Once you start having a family, things can get quite complicated.

Working class people will look for special living arrangements. When I lived in West Hollywood, I had a garder and a maid. I didn't pay them. They stayed in the room above the garage for free. The yard and pool were always nice. The house and kitchen stayed clean, and there was always stuff to eat in the house. They had day jobs in the area and short commutes, so the arrangement worked for both parties.

Actors (and by that I mean waiters and waitresses) would live 3 or 4 to a small place. They would take classes and audition during the day. They worked in the evening. They crashed at night and did it all again the next day.

Most people don't "thrive" in the area. They manage. They may look hugely successful, but there is a lot of debt, turmoil, angst, etc.