Regardless of CA, it's a lot everywhere else. Especially when they're bunking three in a room at that rate. The markup (for all of it) is the real atrocity here.
It's a triple occupancy dorm. You could definitely do that in Seattle/SF/NYC considering it's a single room with no kitchen or bathroom shared by 3 people (other than the fact that I think it would be illegal to rent out).
Regardless of CA, it's a lot everywhere else. Especially when they're bunking three in a room at that rate. The markup (for all of it) is the real atrocity here.