You know, I was just thinking about this two days ago, after reading a (ridiculously basic) book on FI - "Live Well on Less Than You Think" (btw, I definitely do NOT recommend it to anyone reading MMM; its actually a step backwards)
The one interesting thing I learned is that income rises for all types of jobs as cost of living rises, but it doesn't rise proportionately with COL.
And, that the area I live in (the San Francisco - Oakland - San Jose metropolitan area) is by far the most expensive area in the country to live (probably in the world!) - about 2x the national average, and significantly more even than NYC (I had always thought we were 2nd to NYC)
We have the highest average incomes at all levels of jobs, but the COL is so high that we have one of the worst income to COL ratios. (incidentally, the one place we think of as the most depressed and pathetic: Detroit MI, actually has one of the best income to COL ratios)
What that means (to me at least) is, that IF you can figure out how to live way below the areas average COL you can take advantage of the high average income and have the best of both worlds!
I doubt I could charge people $40/hour + $1/mile + expenses for doing stuff like hanging pictures, changing light bulbs, trimming hedges, and taking away old junk to resell, and still have a loyal customer base of repeats and referrals, if I lived anywhere else (I do actually do legit handyman work frequently, but I also get hired for stuff like that surprisingly often)
My girlfriend and I live in an RV in a small RV park, for $485 pr month (which we split 50/50.)
We spend about $150/mo ea on food, I pay $134/mo for insurance (combined, health, auto, and RV - which acts like homeowners), and $130/mo on utilities (electricity, water, internet, cell phone) - for a grand total recurring living expense of about $1000.
When I do go out to eat, that most often means a $3 super burrito w/ free chips and salsa from the fake truck about 1/2 mile from my house.
I looked into buying a house after the bubble burst, but even then, in the worst neighborhoods, when I plugged in the numbers, I would have never come out ahead compared to the rent I'm paying now.
I'm thinking when I have a decent down-payment built up (without tapping my IRAs) I may buy a house to rent out to other people, while continuing to live in my RV.