One reason the Bay Area is so expensive is that the way to make a successful startup is to make the right product, not to pay employees less. So cheaper locations have no advantage.
Very true. It’s worth being pretty specific about location, of course. Even in 2008, I think the East Bay was better for cleantech than SF proper & it definitely made sense for SpaceX to be in LA. (space, industrial support, technicians avail.) Direct cost not primary factor