I think a lot of people lower their standard of living when they move to expensive places. For instance, I live in the mid-west in a 5-bedroom, 3-bath house with a 2-car garage. My wife and I own 2 reliable cars, and we eat at mid-level restaurants almost every day. If we tried to live a comparable life in NYC, I'm certain the cost-of-living argument would apply.
My whole point was that my standard of living went up compared to Maryland. I'm making more and my bills didn't increase as to offset that. I have more money for vacations, going out, etc. It's true that the big house and car lifestyle may be more expensive, but even talking about those things IN NYC is ridiculous, obviously it makes much more sense to living in NJ or Long Island, where a develop salary can definitely get you a house and a few cars. I'm pretty sure cars are the same price most places and NJ has the cheapest gas in the country as far as I know.
