Interesting choice of words by the Author of the article – makes it sound like the plague has struck the Bay Area.
In all seriousness, it seems like they do have a problem. A good friend of mine here in Atlanta was offered a job by a SF-based company and was originally told he would have to relocate. When he discovered that he would be paying double for a studio apartment than he currently does for the mortgage on his Metro Atlanta house he declined the offer.
The SF-based company then countered by saying what if he worked remotely from Atlanta?
Result: Done deal
So what will become of the Bay Area Tech Sector? How will employers deal with finding, retaining and paying a “Bay Area Premium” to tech sector employees? Will the Bay Area become a remote workers haven as tech sector talent “flees” to lower cost regions?