Ask HN: Why not base a tech company in a LCOL area as a hiring incentive?

What would happen if a tech company/startup based itself in a LCOL area like the US midwest or south?

Then the company offers say only 70% of tech salaries because it can't compete but with the incentive that everyone can easily afford houses?

The actual salary would be lower but the overall lifestyle could still be better

Have any startups tried this?