You can get single family homes within city limits for $450-$750k. If you can't figure out how to afford a home like that on a six figure salary (let alone with 2 income earners in family situations), what you probably really need is a financial adviser. If you don't want to live in the city, Jersey City is swimming in sub-million dollars single family homes.
The D.C. area is actually more expensive in many cases, but you can haul out to a suburb 30 miles away and get more affordable housing on an engineer's salary and metro/commuter train in. It's not the end of the world.
Your commute may not be a 10 minute walk door-to-door, but...well...welcome to living in a large U.S. city where the jobs are.
The problem these companies are facing is availability of qualified staff. It'll take years to build out the facilities, and cheap places just will never attract the talent pool.