There’s a feedback loop here. When many companies scale up compensation for areas they are contributing to higher expenses in the area. I think in the long run this will certainly have the effect of making desirability a key factor in how expensive an area is, but without the feedback mechanisms causing costs to get out of control as companies increase pay more and more to keep up with rising costs resulting from increased pay (mostly realized as increased rents, driving up the costs of all local services, employee rents, and office rent).