It’s why Austin/Portland/etc grow in these areas.
Realize you're being colloquial here, but I think it's a bit SF centric to credit SF with growth occurring in other areas of the country... In the case of ATX you have at least UTexas & Michael Dell not playing a small part in the tech growth there, for starters..
Also if you look at the businesses, networking, and where the VC money comes from, the SV connection is clear.
Flight from the Bay Area has absolutely powered a lot of growth in those places.
They were cool places in the first place of course, but that is why they were attractive to move to.
So yes they did - due to that one.
I'm making 80% of the SFBA wages and I live in the rust belt. I had a 1 bedroom, 800 sq. ft apartment a block away from work for <$1000/mo - which is actually pretty high for the area. I can rent a house for ~1,200/mo if a 20 minute commute were fine.
I've talked to a few recruiters in the Bay Area but the crime and cost of living are highly unfavorable. As far as I can tell, the only reason one would go out there is to do something state-of-the-art. I don't know why people would do anything else there unless they were already wealthy.
* winter isn't that bad if you have a heated garage at work and at least an insulated garage (if unheated) at home
* winter is that bad if you park outside
* the downtowns of most major rust belt cities are shockingly cosmopolitan with brunch joints, breweries, and art galleries
* the art scenes are shockingly good because the costs are pretty low
* the airfare can be kind of expensive
* the spring and fall are very, very nice
* the cities are generally managed poorly but the first / second ring suburbs (esp. the wealthier / more conservative ones) are really, really nice places to live
I think Paul Graham made this point, but it's good to live in areas that used to be rich. St. Paul MN, Columbus OH, and Erie PA fit the bill - the old mansions and old town neighborhoods can be really really nice and shockingly affordable if you're used to coast prices. There's less ethnic food generally available but there is pretty authentic stuff in the immigrant neighborhoods and the prices are authentic too.
The biggest 'quality of life' thing is the ease of getting around the low storage costs. In California, it seemed like people could really only have one or two hobbies - in the midwest it's not uncommon for folks to more than half of these items: kayaks, bicycles, motorcycles, boats, fishing rods, tents, cameras, skis/snowboards, hammocks, golf clubs etc. Having winter makes it easier to get outdoors during the warm months, and if you have kids, the schools in the richer areas tend to be very good.
The downsides are the roads can be pretty bad (esp. in Illinois and Michigan), winter can be brutal, the salt can make car ownership expensive, car ownership is critical unless you make it otherwise, and it can be tough to find intellectual engagement.
NYC has the same problem as SF: it's hell to get in and out, and no one is building new units with easy access to the city center. (LA likewise.) But Boston, DC, Houston, and other very big cities are way more forgiving to people willing to commute 20-50 minutes in return for some decently-priced housing.
It's definitely cheaper than SF now, but even more interesting is that it doesn't look to be set for a price spike; there's plenty of land to develop further, and for all the stupid housing laws there's not too much NIMBYism.
(Now if only the existing land wasn't so horrific to build on...)
They leave for more affordable cities or head back home to be close to family when they decide to have kids.
EDIT: May I offer up Tampa as a yet-to-get-expensive locale? I'm making SFBA wages in security, but bought a 4 bed 2.5 bath house with a pool on a quarter acre lot twenty minutes from my company's office for ~$200k (and I have fiber to the home for $45/month).
The highest rated beach in the country is in Clearwater, ~30-45 minutes away, we have an amazing craft beer scene, lots of parks, beach/water recreation, very nice international airport (30 min away, $5/day (!!!) for parking), etc.