I had been told that by several people. I spent about 6 months looking for work, while living here, before giving up. I had several places contact with responses along the lines of, "You would fit our position perfectly, but we just aren't going to risk hiring out of state."
As someone who hires and is slightly leery of hiring out of staters due to questionable long term viability after training, I don't hesitate to hire a good person with potential from out of state with a good reason to relocate and stay. After all... I am also an out of stater and we have many on our staff.
Just make sure you've got your response to that question down cold, and if they don't ask it, bring it up. Know the area, be able to talk specifics about why you want to come here. And if in doubt, liking lobster is not a good reason

(yes, I got that response once)