IMHO, this is a more local version of National Pride, with a little bit of selection bias built in. I have never lived in a city that didn't, collectively, think it was the best at something.

I think it gets magnified in the wake of the unreal inconveniences of large metropolitan area's housing--traffic--etc. You, HAVE to think that yes, you're getting something for that inconvenience that you can't get anywhere else (whether it's true or not), otherwise, you simply wouldn't be there.