I don't understand how this is working.

I'm originally from Nevada, but spent the first chapter of my adult life in San Francisco. I've been home for the past few months. Prices here are tantamount to what I grew accustomed to in SF, but I'm sure people here still make small ranch town wages. Coffee is $7. A meal is $20+. They used to be fractions of that, and that doesn't even touch the runup in real estate where crappy houses in nice areas can be $1MM+. A local sandwich shop has a flyer on the wall pleading with customers to understand that their cost of ingredients has grown astronomically in recent years.

I legitimately don't understand how this is working for the people who have local incomes.