Even the big companies do this. My employer is a FANG and I'm based in London. Rents are nearly as expensive as in San Francisco... But if I moved to Silicon Valley, I'd get 40% more base pay for the same work.
The only justification for this policy is something called "cost of labor" — in other words: "We've agreed with other tech companies that nobody's going to raise salaries locally."
I think the best of all possibilities is move to silicon valley, get a high paying job, earn the confidence of those around you with good work and communication skills, then go remote and fight to keep the same salary. Then live wherever you want.
