But it means that one should really love the Bay Area in order to sacrifice $60K/year of effective income just to live there. I lived in the Bay Area and when faced with this very issue I moved (cost of living being only one factor). It's a special place -- but not that special (for me). That said, for the first 10 years I was there I too was smitten by the place, and assumed I would never want to live anywhere else. Reality caught up with me, which is really a good thing.