$2500 was about par for the course for a doorman building in the Financial District in 2005. Was the lowest price among the ones I looked at. The whole point is that you have to savvy (i.e. have some inside connection) to the local real estate scene to not get fleeced. A tool like Craigslist democratizes the market, and makes inside information less valuable (which is why I suspect it's never caught on in New York....cause New Yorkers like feeling like they got the 'deal').
As for the foodie scene: I'm aware there is a thriving one in New York. The point is that it's totally orthogonal from the sort of ambitious creative class that would create a startup. The guys I knew from Wall Street most certainly did not know how to fry an egg...they knew how to order stuff on SeamlessWeb, and that's about it.
In the Bay Area, those worlds intersect, if not directly overlap. Paul Graham of Y Combinator used to cook for his startups at the weekly dinners. I can't even begin to imagine a Goldman partner cooking for his desk.