You can make money in one place, save it, then spend it somewhere else. This is why people in nice but cheap places are so afraid of Californians.
Imagine you live in a place where the average salary is $50k, but it's a nice place, and often people will move to your place from somewhere where the average salary was $200k. Economically, it is difficult to compete with those people for things that are already scarce (housing).