Wages are set by economic rules, things like supply and demand, not median house prices. That said, people who are getting a low wages might accept to be in a low-down economy such as today, however, as soon as the economy goes up, they're going to be looking to move. Thus, even when you can get by with hiring someone for a very low wage relative to what they could have made in previous years, it is often best to assume that the economy will get better and those people are going to want to move if you're only offering low wages. But if you offer a good wage, that means that those people, when the economy picks up, aren't going to be looking for a new job and so you can keep them instead of having to hire and train someone new when the economy picks up.

I don't know why median house prices are even factor at all in what you think you wage you a wage you accept would be. If you can't afford a house, that means you have to lower your standard of living. There are lots of people who live in less than median houses. That's part of the way averages and statistics work. If you don't like the median house prices, you may have to look at what's going on in your city that the house prices are so high. There are certainly issues in Silicon Valley that need to be addressed, but they are not issues of wages. They are other issues that they need to address. You are always welcome to live in a house that is lower than the median wage and that may be what is needed in order to afford something.