Paying living wages is a challenge every startup needs to consider if it wants to scale past a meager existence for its bootstrapped founder.
Startups thrive in low cost of living areas. You see cycles of cheap land -> innovative businesses -> concentration of talent -> economic boom -> expensive land -> globally uncompetitive businesses -> whole industry collapses.
This is what happened to the automotive industry in the mid-west.
Compare that to a place like Japan where the post-war distribution of land and smart zoning continues to cultivate a vibrant local economy, or venerable Italian cities where homes and businesses remain for centuries.
I don't condone decommodification of real estate or other acts of heavy-handed socialism, but there are laws that play against the "little guy" that must be repealed. Admittedly, every approach (including the Japan and Italy examples) has pros and cons, but many of us forget that there are alternatives out there.