Planet Money shows us how San Franciscans and those in other big cities, may earn more than other places, but it feels like a whole lot less. The median income in SF, for example, is $41,262 but it feels like $32,289. See its wonkish chart here to plan where you might move to next.
I’m not buying it George. What is really going on is that spending priorities of people in SF are very different from the spending priorities of someone in rural Nebraska.
There are some people for whom living in SF is special and valuable beyond any work or family obligations. They see themselves as “cool” or “hip” living here and, for whatever reason, that means that they are willing to pay half or even two thirds of their net income on housing costs.
That would strike a Nebraskan as insane, and yet people do it. Who are we to question that choice?