You have a point, but you're dangerously close to an argument that people who live in more expensive areas are intrinsically "better" than those who don't, what

You have a point, but you're dangerously close to an argument that people who live in more expensive areas are intrinsically "better" than those who don't, whatever the reason. Well, no. I am totally fine with making that argument, in a statistical sense. There are plenty of exceptions, but there's a kind of critical mass effect. New York is expensive, so you probably can't live here comfortably unless you're in the top n%, so members of the top n% move here, pushing up prices (and also hanging out with other top n%ers, and coming up with new ways to make money). Some n%ers leave, of course, but the general trend is still there.