Comment Valley is too expensive (Score 2, Informative) 570
Having moved from a relatively cheap area (Central Orlando) to northern California, I can say with experience how bad the difference is. A home that would cost 250k$ in Florida would cost 800k$ here. I was nearly reluctant to move out here having been offered 45k "straight out of college" in Florida I could afford a mortgage on a small 100-150k home, something I would have liked to have done. Now, in California even being paid in the upper 100k's, it's very difficult to afford a mortage.
My point is this: "People in their 20s are more inclined to buy real estate now than they were 20 years ago, according to annual statistics from the U.S. Census bureau. In 2005, almost 26% of household heads under 25 years old owned their home, up from 17% in 1985. Homeownership rates for 25 to 29 year olds also increased over the past two decades, though not as sharply." (src: http://www.realestatejournal.com/buysell/tactics/2 0060802-meehan.html)
A lot of really smart and educated people straight out of college, or at any age really, are looking to own property and do things with their income than pay for the silly cost of living in CA. A website (i.e., sf.net) can be run from almost literally anywhere so why run it from the most expensive place in the country? I think a lot more people with talent have the option to persue these things and therefore refuse to move to the valley.