i think you need to look at the pay rate for the same jobs in AZ. i know that my fiance's company have different pay scales for their branch offices in other states/countries. so if employees want to transfer and move to an area where housing is cheaper, their pay rate will also be lower/adjusted. it's expensive to live in the bay area, but i do think that people are paid more here to compensate for the higher cost of living. i am not sure if it's high enough to justify the housing prices or not, but if you just rent instead of owning a house here it's not as bad. i think the rent here is not 'that' bad. (i think that is why the % of home ownership is so low in CA)
you might want to visit AZ first to see if you would like living there. i really love living in bay area though!
(i know you do too!
)
also, even though house prices fell, but it really hasn't fallen as much here as it has in other states, and i believe it's due to the job market.