> Then why pay $200k for a software engineer in the valley when the same talent can live outside of the bay area and can do with 1/3rd of the salary That is a

> Then why pay $200k for a software engineer in the valley when the same talent can live outside of the bay area and can do with 1/3rd of the salary That is a pretty ridiculous assertion. Rent and taxes are higher but they are not $130k/year higher. You can even save >$70k of the $200k you make in the bay area without being exceptionally frugal, which you obviously can't do if you're making $70k/year.