I hope these people manage to get better pay. I hope the same thing happens all across the Bay Area in all service jobs, and I hope the pressure trickles up until the tech employees feel the squeeze of $25 burritos, plus even worse rents as the people making their lunches can afford to live in the city and compete for housing. Then I hope people either stop accepting tech jobs in the Bay Area, or companies decide it's a losing proposition to set up shop in a place where you have to pay $250k a year to a new grad.

We've got better communications and networks than any time in history. Why do software companies, which consume no raw materials and produce no physical product (both good reasons for setting up in a port city), all need to cluster in half a dozen spots? Think how much more runway you could get out of your seed funding if you set up shop in Missoula or Albuquerque, where you can rent a whole house for $1500/mo, can hire from the local university, and have beautiful outdoor recreation within a 15 minute drive?