I mean, being honest, the weather IS nice. Once the government is cleaned up and the homeless/crime problem taken care of to some extent, I'd imagine people will start flocking there again. For the record, I'm not talking about LA or anything like that. Inner city housing sucks in every state and the cost of housing is absurd because of basic supply/demand. But I'd imagine smaller towns and cities will become boom towns, assuming this actually goes down how we think it will. Same thing with Colorado, Oregon, and Washington. All beautiful states, but corrupt governments.
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I've had a different idea of how to do this for a while. If states like New Hampshire and Rhode Island can exist, why not just make it so that once a county hits a certain population threshold, say a million, it's treated similarly to DC. It's a self governing, autonomous entity inside the state. So using Texas for an example. Houston would become self governing. No longer getting representation at the state level and passing their own laws independent of the rest of Texas, but still have to pay Taxes to the state of Texas. Likewise, as far as federal elections go, they vote independently from the rest of Texas.