This is actually the case in certain industries and areas. You can, for example, make more money as a medical professional in a rural area than you can in cities, for example.

The main thing missing here is that this is the tech industry where there was previously no demand in rural places, which makes the low supply in rural places irrelevant. Before the aggressive lockdowns across the country, tech companies didn't care about rural areas because the increased labor pool wasn't worth the compounding gains you get from a concentration of talent, face-to-face communication, and advanced urban infrastructure. Now they literally can't have that, they will give you a worse deal because they have access to a larger labor pool.

It's kind of absurd to suggest that increasing the labor pool alone will lead to higher wages. It's strictly worse for city dwellers who already benefited from an increasing employer pool, which is now offset by an increasing labor pool.