No it does not take $550k/yr to buy a $1.6M house. But all this will vary based on your timelines what your nest egg currently looks like, etc.

But also, you don't have to buy a house. Median rent, groceries, car payment, etc. in San Jose aren't gonna run you more than like $7k/mo. After taxes on your income you should have about $100k after essentials are all paid for. That's more than enough to basically live whatever life you want.