If I knew a secret to get better tech jobs out here, I would do it yesterday. (If someone wants a technical cofounder in an interesting location, let me know. ;)
With so many of my friends on the West Coast, I feel the siren song myself, and it's tough to combat network effects.
My boss was making under $200,000/yr and he was living a similar life to someone making over $1M on the coasts.
If you think that businesses moving into the midwest will evenly distribute over its entirety, think again. Network effects will cause companies to cluster together into hubs no matter where they go.
Starter homes are $800,000 in Seattle Washington.
It would be a long while before it becomes a problem.
God, I hope not. California can stay in California, keep it out of the Midwest.
Instead they should all move to the midwest, south, or NE, where cost of living is a small fraction of the west coast. They can pay off a very nice house in full for less than the cost of a downpayment in any trendy west coast city, and they can easily afford to live a stereotypical middle class lifestyle - house, cars, kids, vacations, a stay at home parent - on a reasonable income, something which is now increasingly difficult on the west coast where cost of living is extraordinarily high.
I sincerely hope that various companies start aggressively opening offices in middle America, the south, upstate NY, etc. Maybe someone should produce a few goofy TV shows about how 'quirky' and 'cool' and 'hip' those destinations are, turn them into the new cultural mecca for all the flighty trend chasers, and let the west coast housing mess take care of itself.