Minor note, because my thoughts were along similar lines - she was evicted from her $1600/month apt, and presumably would pay significantly more for it now.

I think the answer is she's making a choice based on her preferences:

1. Live and Work in SF make $80k, and live in small expensive housing

2. Work in SF and make $80k, live in Stockton and get more and pay less for a house, and spend a ton of time commuting

3. Live and Work in Stockton, make way less, live in a place larger than SF but Smaller than #2 and not have to commute

She chose #2 - others make different choices

For (3) you are of course assuming that there is a job in Stockton for her skill set.

There may not be which makes option 3 an non starter.

I think it's important to acknowledge a very different set of priorities for someone in their early 60s, who is:

1) Close to retirement age

2) Likely still saving as much as possible so she can retire

3) May have other expenses not detailed in the article, stemming from family needs, health concerns, etc.

Also note that a property management company is evaluating someone from the "risk of non-payment" perspective - not a financial advisor's.