People used to move to cities for the opportunities. Now it's increasingly difficult to do so. For lots of reasons we need to make it possible for people to move to the cities and thrive.
Pretty much every scenario seems to be "optimized" to have techies paying 30-50% of their monthly income to housing. You can't really win, but you can attempt to maximize the real dollar amount you end up left over with with each month. Working remotely is "cheating the system" and is therefore largely disallowed, or "work from home" is allowed only to quell some degree of outrage. Literally the industry that invented video chat doesn't [want to] understand how to use it to work remotely.
That's exactly what would happen in a normal market.