The house we bought was a vacation home for a little old couple from Omaha. A remote place on a hill overlooking Lake Travis, 30 minutes from downtown. Amazing sunsets, the weather is in the 60s and 70s in January, the springtime wildflowers are unreal, there's great food, good live music, lots of charming little hill country towns just a short trip away.
Uh, yeah they do. Just because the climate isn't as nice as the Bay Area doesn't mean people don't have homes there. For one, the culture/night life is incredible there.