Go on Zillow or Redfin and look at Bay Area housing prices near major tech companies (Cupertino, Mountain View, Palo Alto, San Francisco) and you'll see that 1 million dollars is entry level for a single-family home, and ~700k is entry-level for a condo that has HOA payments ~400-500 per month.
That's the bottom line -- cost of living is so high the salaries need to be high too, or people won't accept them.
You're implying high housing prices cause higher salaries when it is almost certainly the other way around. High salaries and limited supply seem to be the key causal factors in high housing prices.
It's a vicious cycle. People are still coming to the area and they demand high salaries because housing prices are high, and housing prices are high because of the high salaries of people already living in the area.
That's the bottom line -- cost of living is so high the salaries need to be high too, or people won't accept them.