"high cost of living markets are basically propped up by the surrounding economy." Yes - to the extent that surrounding economy can support the general COL. So

"high cost of living markets are basically propped up by the surrounding economy." Yes - to the extent that surrounding economy can support the general COL. So if/when the surrounding economy can no longer support a relatively high COL (in this example of mortage/rent = housing), why not just let the COL adjust proportionately to the surrounding economy? So in the event the surrounding economy is strong & growing, the COL is also high and rising (as we've experiences over the past ~10 years). But when the surrounding economy is bad and declining, the COL should lower to match, no? "As for the handouts part of your comment, what do you consider a handout? The stimulus checks? Is QE considered a handout? " Yes, among others, these programs and others like it are only artificially propping up high COL areas (housing, for example) that otherwise would experience a correction (down) tied to their respective surrounding economies.