The problem is the cost of rent for individuals and businesses. Asides from housing costs, SF's cost of living is pretty standard for a city (a little higher than most, but depends on the area). There just are not enough housing units in the Bay Area. Worse, the new units entering the market tend to be mostly market rate, with a few "affordable" units thrown in.

Raising wages will never fix the problem. SF needs to build up or change laws to deincentivize people from living there (e.g. higher taxes on high-income tech workers). The latter has other issues associated with it, but would at least encourage the decentralization of tech talent to other parts of the country.