It may be close to a chicken/egg scenario, but I believe companies pay the high(er) wages so their employees can afford to buy homes - which (IMHO) are high because of the rules, regs, etc.
actually the wages particularly in Silicon Valley were higher than the housing base would require from early on in an effort to make sure folks didn’t unionize. Benefits were outstanding as well. This drove prices in the Bay Area up (and we are talking late 60s early 70s) so that those who couldn’t afford the area kept moving further out (Morgan Hill and Gilroy to the south and Livermore and Davis to the east).
I am assuming you do not live in the area or have much familiarity with it because your comments reflect that