I'm from Southern Cal. While it's a fact that Cal schools have mostly Cal kids (similar to other states), i can name dozens of kids who attended and/or were recruited by out of state schools. I personally know kids who played D1 at every Ivy school, most Patriot league schools, Clemson, LSU, New Mexico (both state and U), Arizona (state and U), Miami of Ohio, Indiana, Oregon (State and U), Charleston, Maryland, Washington, Purdue, Nevada, to name a few. As for D3, even more.
Coaches will recruit from anywhere a player domiciles - it requires a well thought out plan to play before your target schools and the skills needed to get the RCs' attention. Also, keep in mind that (at least anecdotally from posts over the years here) that there seems to be a preference to play within a few hours drive of home.