This comment is too simplistic, but I have noticed this scenario playing out with a lot of the younger people I work with. We have a remote org and hire remote, but a lot of the young people we hire out of college have relocated to some of the most expensive cities.

There’s a growing attitude that if they’re already paying exorbitant amounts for housing and have a large amount of student debt, why not go all-in and buy a house that’s an extra $100-500K more than what they could find in a cheaper location?

There’s also a lot of FOMO from people who watched their friends over-extend themselves on expensive home purchases and then be rewarded heavily for it by rising home values. I’ve talked to a lot of younger people who have feel a severe sense of urgency to buy the most expensive house they can afford before they miss out on future gains or get priced out of the market entirely.

If you think house prices only go up rapidly and your entire adult life has confirmed that idea, you also wouldn’t be interested in moving to a boring location and buying a cheap house. You’d want to move somewhere exciting and get the most expensive house the bank will let you buy.