Early stage VC-backed startup compensation is very different from later stage companies or bootstrapped companies. It's very common for founders or early employees to receive a lower salary and receive equity instead.
I don't know how you're coming to that conclusion. 200k's not going to buy you a large house, but it'll comfortably pay rent/food/savings for a 2-3 bedroom house or apartment for a family of 2-4 in all but the very most expensive parts of the Bay.
For mortgages, you'd need to be looking in the cheaper parts of the Bay, but that still means "dense, boring suburb" as opposed to "crime-ridden slum".
