This analysis may be reasonable as far as it goes, but it can still make financial sense for someone to live and work in the Bay Area. I recently took a new job near San Francisco paying ~$160k. Living cheaply, our actual consumption for my family of 3 is about ~50k a year. (Yes, this is possible -- and life can still be enjoyable if you like spending time in nature/other inexpensive activities.) After taxes, that le…
Edit: I just saw that you live in the city. The rest of the argument still holds though.