Re: real estate prices, go read "The Rent Is Too Damn High" by Yglesias. Yes, it's a problem. And regulation is a big, big part of it.
Also, there are plenty of places where you can make money working in tech and have a relatively low cost of living. Austin, San Diego, Spokane, even Seattle isn't too expensive, compared to the bay area.
Which one of these cities doesn't fit.....Spokane? Since most of my family lives there, I would love to hear about tech opportunities there compared to...Austin, San Diego, and Seattle.
That doesn't really make for a tech scene, as much as I would love for that to be true. I couldn't go to Spokane and a get anywhere near a comparable job as I could in Seattle. Even Salt Lake City has a better tech scene. Spokane lacks a flagship university, unlike the other cities.
Also, there are plenty of places where you can make money working in tech and have a relatively low cost of living. Austin, San Diego, Spokane, even Seattle isn't too expensive, compared to the bay area.