For instance, I’m in my late 20s here in NYC and most of my friends are around the same age. Virtually everyone earns six-figures and many earn mid/high six-figures, a couple people I know even make 7-figures at a young age. Our receptionist is 22 years old (I don’t even think she went to college) and we pay her close to six-figures. Does the higher compensation get completely eaten up by the higher cost of living? Not at all. For instance, housing prices in Manhattan are relatively high (relative to US but cheap to other big cities globally) — but you can live NEAR Manhattan for fairly cheap. I live in Manhattan now but a few years ago I was living in Brooklyn (just about 15 mins away by subway) and was paying only $800/month for a great place in a vibrant neighborhood full of young people, restaurants, bars, parks, and cultural events. I was also making six-figures which is common. I was able to save what the average person makes in a year. Also, people who buy in Manhattan are building equity just as if they were buying anywhere. Someone who only makes $60k per year wouldn’t be buying in Manhattan. In Manhattan $250k is considered middle-class. So it is all relative. More importantly if the typical person I know in NYC decided (or had to) move to the Midwest they could go there and live like a king because of all the money they’ve saved and/or equity they’ve built up in their homes. If the typical person from the Midwest were moving to NYC, they would have a very tough time with money for a while.

The Midwest has been “cheap” compared to the coasts since time immemorial. Career opportunities and wages on the coasts have also always been much better and higher than those in the Midwest. The “brain-drain” has been moving smart people from all over the country to the coasts ever since the Industrial Revolution. There is a reason for it.