Companies don't move because the talent won't move. As soon as you move for "cost savings" you've already told any employee you actually want working for you t

Companies don't move because the talent won't move. As soon as you move for "cost savings" you've already told any employee you actually want working for you that engineering excellence isn't valued; so who's going to move for that. The "crowded" part is the reason companies don't move inland. It really can't be overstated how much the quality of talent drops off as you leave regional hubs like NYC or SF. This compounds too, things may be expensive in these cities, but the amenities, job opportunities, and networks are exponentially better. Cost of living reductions evaporate when stacked up against lost future earnings (percentage raises on a smaller base + no opportunity to job hop + reduced opportunity for any potential spouse to do the same), more money spent on transportation and housing, etc.