That's not what I was saying at all, but alright. If you're interested in the topic, look up utility curves, income effect, and substitution effect in a microeconomics textbook. It'll probably have a much better explanation than I can communicate through text (unless I start making graphs, which would be a bit time consuming).

Here's a copy paste of my explanation on reddit though (where this topic also constantly comes up):

Living in the Bay Area results in a higher wage, which increases consumption (income effect), but at the same time the price of housing is much higher as well (to a greater degree than the increase in income). You substitute sq ft with other goods. If you place relatively heavy utility on housing by sq ft in comparison to all other goods, then I guess it's a bad idea to come out here, because you're going to be on a lower indifference curve. Otherwise (and I think most people fall under 'otherwise', which is why they come out here ) its not that bad of an idea, and you'll probably end up on a higher indifference curve.