You realize I'm agreeing with you right? You are looking at the Palo Alto market, or San Jose market. But an immigrant might be willing to live in inner Oakland or a place where the market IS willing to give you a home for $1000 a month it is just not what you come to expect as an American.
I'm Indian American. My father was willing to live in a roach infested inner city apartment and thus we managed to pay $400 rent. I grew up in the US and got a top-3 school CS degree. I'm unwilling to live like my father. Hence I dont compete with H1s on the "jobs going unfilled" because they dont meet my expectations. Luckily I (and probably you) have options. My father didnt. We're lucky and we can be picky with where we live.
And for the record, the market will absolutely give you a sub $1000 apartment if you commute far out enough and live in disgusting conditions. You and I are unwilling to do so. Others will.