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Sure, raise the rent -> raise the pay. What happens to the people who don't work in the dynamic IT sector? Everybody gets a raise? Doesn't this just bring everybody to the starting block only with a little more inflation? Otherwise you create an imbalance where you have affluent neighborhoods and slums, something that you definitely want to avoid.

The solution is to build more housing to alleviate the pressure. This way you can keep the rents low without pumping up just a few salaries.

And in a city like Berlin the situation is vastly different from SF. Public transport and biking work like a charm so housing doesn't have to be smack next to the headquarters.

Companies want to reap the benefits of coming to a city with a qualified workforce but the disbenefits get to be "enjoyed" by everyone else around there. Tragedy of the commons. They should be supporting the housing market if they want a good reception.

Full disclosure: I'm saying this as one of the people who enjoys such benefits while some people around me bite the bullet.