The main contributor is high real estate prices. Much of the value generated by tech companies is eventually captured by property owners. Geography and open space preserves prevent building out anywhere within easy commuting distance. Politics prevents building higher density housing in most neighborhoods.
The secondary contributor is high taxes. The Bay Area, and California in general, isn't the worst for taxes but in terms of total tax burden (income tax, sales tax, excise taxes, mandatory fees) it's near the top. Especially because state income taxes are no longer deductible on federal income tax returns.
Are the real estate prices high because of high salaries? This is what I'm getting at- the infinite money glitch tech salaries skews a lot of things downstream.
