COL is part of this, but I think the things to consider are that software engineers are worth more based on the scale of our work, and network effects can drive

COL is part of this, but I think the things to consider are that software engineers are worth more based on the scale of our work, and network effects can drive up our market price. I believe the scale argument is self-evident, so I'll expand on the network effects: By being in the bay area you meet a lot of software engineers and provide value to companies you work at by referring good software engineers. This ends up being worth a lot of money to companies (more than they pay in bonuses). By being an engineer in the bay area it's also harder to be retained. Engineers here are pretty transparent about compensation and working conditions. If someone I know is working 50 hours a week or being underpaid, I make sure they have referrals to good companies as soon as they want them and they get a good job. Speaking to engineers who've moved here from other markets, that kind of culture and network just doesn't exist in most other areas.