It is not that insane. IMO it is not sustainable (which is why I think I would not buy into SF real estate even if I worked there), but SF salaries are often s

It is not that insane. IMO it is not sustainable (which is why I think I would not buy into SF real estate even if I worked there), but SF salaries are often significantly higher than elsewhere, so renting is a perfectly viable option. Assuming 40% tax bracket, a 30k salary difference gives you 1500/month extra after taxes that you can spend on your apartment. If you consider a couple with in demand tech skills they may be significantly better off financially moving to SF, where they are likely to both find very competitive salaries. In many other areas they may have to contend with one person getting into his best career path and the other choosing from limited options to be nearby. I am not advocating SF living, e.g. this is not my kettle of fish simply due to the quality of life choices, but from a purely financial viewpoint it is not that hopeless (yet?).