Now, let's move to another country: Spain in this case. A normal salary for a junior engineer is around 15K/year (euro) up to 30K for a senior developer. A big house (for europeans, 950sq ft) in a normal neighbor in Barcelona costs around 400K (euro), which would be like... 26 years of salary?
And I have compared different houses, for what I have seen, in general the price $/sq.ft. is pretty similar between both cities.
As I said, I understand that the engineers might not get back what they produce (and I agree) but I just wanted to give another point of view.