[ethikal]

Shouldn't high costs be a deterrent to startups? How can a startup be "lean" if its employees need to pay most of their salary in rent?

[doktrin]

Well that's the employees decision. Rent is high just about everywhere from Oakland to San Jose. When taking into account transportation costs, paying a premium to be in San Francisco is often worth it from a cultural standpoint. I can't really speak to Oakland, but after having worked on the Peninsula I would unequivocally not want to live there.

[ttrreeww]

In a gold rush, the miner (employee) don't make the big bucks. It's the miner support (landlord, investor, founders) that make the huge bucks.

[dasil003]

Depends on if there is any actual gold. Whoever strikes the mother lode makes many orders of magnitude more than the suppliers (eg. Facebook).