I can't say what's normal in Houston, as I've only lived and worked in Los Angeles. Out here a developer with Java or .NET experience like you describe would easily start at $85k base at the companies I've worked for over the last 4 years. There would also be signing and annual bonuses and if you're good, significant raises each year.
Am I starting to wonder if I get ripped off for staying here and not asking for a big raise
I have always been baffled by this one. Usually at big companies there is a rule set by corporate that raises can only be 3-5% max in most cases. So even if you're good, the max you can expect on top of $70k is $3500 for your loyalty. If instead you had jumped to another company, you could have boosted your salary to $80 or $85k. And after you left, they would likely pay your replacement the same amount. So why don't companies just offer their loyal employees the higher salary (even if it exceeds the 3-5% threshold)?
The answer is, they do, but only if you threaten to leave. That's what I've done every year for the last 5 years. I never stop the job search, even once I land the job, and when I find a better job offer at the 1 year mark, I bring it to my current employer. Sometimes they offer to match the salary or offer better benefits, and I stay, other times I go with the other job that pays more or offers better benefits (sometimes the new job matches the counteroffer from my current employer).
In this way, I have increased my salary by an average of 19% per year since 2005, gone from no bonus to a very generous bonus package, increased vacation to 3 weeks, and negotiated telecommuting every Friday.
Signing bonuses are basically non-existant in Houston. Annual bonuses are common but that depends highly on the industry. Both the financial and energy industries have taken a big hit in the past few years and they are the lifeblood of the Houston economy, so while layoffs are not that common, bonuses are way down. Not painting a gloom and doom scenario, just saying if you're here, expect all your payment to be in salary/benefits.
I'd add the only caveat is that bouncing around too much (like never holding a job down for more than a year, doesn't sound like you) can turn people off.
I've worked for 4 companies in 5 years (avg of 15 months per employer), and it doesn't seem to bother new employers. I can always spin it as "we finished our one year roadmap and I'm looking for a challenge that my current company can't provide." Besides, at each company I've worked for, the average lifespan of a developer seems to be about one year on average, 2 max.
If and when it does become a problem (i.e. interviewers start saying "this pattern looks disturbing"), the worst that happens is that it gets harder to get new job offers, and I stay at my current job a little longer, knowing that I got an average of 19% per year in pay increases while the average Joe (if he's lucky) got 5% per year, or in the OP's case 2.5% every other year.
That was one of the only Mark Suster articles that I disagreed with. He made very valid points, but the truth is that since the IBM layoff of '93, there is no such thing as vertical loyalty anymore. The only loyalty that matters anymore is horizontal loyalty to your co-workers. Anyone can get the axe the moment a manager needs to meet quarterly or yearly earnings figures.
Someone with a high amount of reciprocated horizontal loyalty can be of much greater value (and greater danger) to companies. When you hire someone with great horizontal loyalty, you get to tap into their entire network of former co-workers and they can literally build out an entire new department in your company overnight because they can bring with them all the right people. Unfortunately, this works both ways as these people can also take them all from you overnight as well.
Am I starting to wonder if I get ripped off for staying here and not asking for a big raise
I have always been baffled by this one. Usually at big companies there is a rule set by corporate that raises can only be 3-5% max in most cases. So even if you're good, the max you can expect on top of $70k is $3500 for your loyalty. If instead you had jumped to another company, you could have boosted your salary to $80 or $85k. And after you left, they would likely pay your replacement the same amount. So why don't companies just offer their loyal employees the higher salary (even if it exceeds the 3-5% threshold)?
The answer is, they do, but only if you threaten to leave. That's what I've done every year for the last 5 years. I never stop the job search, even once I land the job, and when I find a better job offer at the 1 year mark, I bring it to my current employer. Sometimes they offer to match the salary or offer better benefits, and I stay, other times I go with the other job that pays more or offers better benefits (sometimes the new job matches the counteroffer from my current employer).
In this way, I have increased my salary by an average of 19% per year since 2005, gone from no bonus to a very generous bonus package, increased vacation to 3 weeks, and negotiated telecommuting every Friday.