It's more interesting that physical location matters at all in 2014.

I don't think we, as humans, will ever work fully remotely. I know companies like 37signals and others have been successful in this working model, but personally, I must have some human contact with the person I have been working with. I would imagine that the majority of humans would also have the same attitude.

Humans are social creatures and we have an emotional need to connect. I can clearly see this as I contrast this human need when I compare my wife's needs and my needs. I am borderline Asperger's and my need to connect is not as high as that of my wife. Although this observation is in a family environment, I don't think it is too dissimilar in an office environment.

So from the perspective of connection, physical location matters.

Also, random spontaneous interactions happen more when there are more 'particles' bouncing around. That's part of the point of this book:

http://davids-book-reviews.blogspot.it/2012/10/the-new-geogr...

That said, I did my time in the Bay Area, got out, and I'm happy to see people doing more in all kinds of places.

I know everyone can boast their own city but I have found Sacramento to be the perfect combination of low cost, central location, and atmosphere. Within 2 miles from downtown, a 1 bedroom flat for $800 in a bike friendly midtown.

I've been a part of the startup community for the past few years and have witnessed the buzz. With large campuses for Intel, HP, Oracle in the suburb areas there is a large pool of talent that I grew up around and occupy the area. Recruiters and VC make regular appearances at collaborative work spaces and maker labs in the area.

Honestly, when I see these articles I'm a bit baffled. why would you move to Reno to save a couple hundred a month on rent?

This is just a guess, but perhaps there is a perception that, being so close, why not just move the rest of the way to SF?

While being so far that travel to SF is really inconvenient. Sacramento is not really being compared as "near enough to SF to count", but rather "A city in the US that is not SF", and thus is being compared against every other city that falls into that category. Being close enough that an hour and a half drive (assuming no traffic) and the expensive parking necessary to visit SF may be a point in its favor, but I'd imagine not a tremendous one.

Ever looked at the cost difference between Sacramento and San Fran?

That's your reason.