I did consider this. There are many things (especially consumer goods, like cars) that cost more-or-less the same regardless of where you live. And that's to say nothing of intangible advantages of many of the more desirable / more dense areas. Your point is taken, but I think for every person who prefers the cheaper location, you'll find one who prefers the more expensive location. And so I stand behind my previous comment.
I don’t have any data on what people will prefer in that situation, and am happy to cede the point. However, this is only the case in when the employer has all the leverage. When I have to fill a hard to fill position, I don’t care about local cost of living. This is especially true for contract and consulting work
