Too many people confuse SF with the Bay Area. SF is just one city in a much larger populated region. You don't need to live in SF proper even to work there. And housing is cheaper outside of the City than in it (generally).
Tell you what, Mountain View / Palo Alto is getting ridiculous. My 650sqft one-bedroom which cost $1700 2 years ago, is going up to $2600 when I move out. Granted you can still find cheaper in Mountain View, and you can get wayy cheap in the East Bay, but honestly the city is not looking so expensive to me these days.
And I live in the Northeast!
I mean, I guess they would need to pay me a lot more, because I literally could not spend 6x my current rent, because that would be all of my income.