Only after you've tried to account for all of the intangibles, though. The right location can give you many benefits—workforce, networking opportunities, media access—that aren't available everywhere. Some of that can be done virtually, but in-person meetings still are much more memorable for many people.
Also, if all your company is doing is "hacking code", then I doubt your company will be around for very long.
All that being said, I do agree with the sentiment, and I think that the benefits of high-cost locales are probably not worth the increased cost of living. I definitely appreciate my Midwest mortgage payment.
"Some of that can be done virtually, but in-person meetings still are much more memorable for many people."
But some don't ever do in-person meetings. There are many small companies who do business 100% online, don't need investors, local staff or anything like that. For this type of companies staying in the big city makes no sense.
(Disclaimer: I live in the woods in a small mountain town)
Also, if all your company is doing is "hacking code", then I doubt your company will be around for very long.
All that being said, I do agree with the sentiment, and I think that the benefits of high-cost locales are probably not worth the increased cost of living. I definitely appreciate my Midwest mortgage payment.