What other options do you have? All cities have the same issue to lesser degree: Seattle is a bit cheaper than SF but also maybe has a bit less talent, Portland is cheaper still than Seattle with less talent still. Unless you are a FAANG who can convince people to relocate to Durham for a bit lesser pay, it’s going to tough going trying to recruit the right talent in that LCOL even though compensation is less.

You are stuck making trade offs wherever you base your office, the market remains sort of efficient like that. If you have the network to hire the right talent in say Atlanta, go for it. But many will still do better in SF.