For all of the people in this thread saying "some of these aren't that bad" you seriously need to get some perspective.7-year New Yorker here.
By NYC standards, they aren't that bad. They're unattractive and small, but I've seen a lot worse.
Some of the places that I've had realtors show me make these places look like palaces. When I first got here and was living on close to nothing, I found (on Craigslist) a Williamsburg loft where there'd literally be a shower curtain separating my "room" (which was filthy) from a dark, tenement-like space with ~12 people in it. Kitchen stuff was at least 50 years old and probably didn't work. I visited at 10:00pm on a Thursday and it was loud as hell. $1200 per month. Um, no thanks. (By the way, Williamsburg has the most intense negative energy on earth. Hipsters sound okay in theory but I can't fucking stand them in practice. To give one a job is like pouring salt on a slug, except a good thing in the former case because the whining is entertaining.)
However, I agree with you. If you can get a stream of good jobs out in the Midwest, that is the way to go.
It's honestly not worth the cost of living here for most people. The high rents here are driven by (a) asshole foreign speculators that the government irresponsibly lets into the market, when a 6-months-and-1-day rule is really in order, (b) various legacy rent-control systems that wouldn't be a big deal except in the context of extreme price inelasticity-- I have no problem with the idea of rent control, or even with its continuation for the legitimate beneficiaries; but when upper-middle-class well-connected asswipes buy their way into an arrangement that's superior to ownership, and lock up housing stock, that's wrong, (c) NIMBY like you wouldn't believe, (d) parentally-funded hipster zeros whose guilt-ridden spawners decided they have some entitlement to the "New York Experience" (at $2-6k/month) even though they do absolutely nothing for anyone, (e) the fact that in investment banking and large-firm law, there really are major career benefits to living here (you pretty much need to live in Manhattan to get promoted in soft-side banking; trading is more of a meritocracy where you can live whereever you want as long as you show up on time). If none of these apply, New York is not worth the cost of living here. It is nice, if you take out the cost problem; I just think having savings and, eventually, the freedom with having a nest egg, improves the average person's quality of life by more. (You might guess that I don't intend to be here in 10 years, although I'm very glad I spent the 7 that I have.)