Regional economics factor in here, and must be taken into account...
Peet,
All of the examples of a reasonable cost of living that you've provided so far are from a region that you are familiar with.
That is not the case in many of the metropolitan areas, particularly out here in the southwest.
Much of our population is in the "serivce" industry (read minimum wage or close to it).
Rents are fairly high.
Deposits are required for ALL utilities (elec/gas/water/phone - if landline).
Moving once somebody gets into a place becomes less of an option, primarily because they may have tried to find the nicest place they could afford (be it for amenities or a sense of security), and they are living paycheck to paycheck.
Promotions, or raises, or whatever it takes to boost one's income may not be frequent enough to offset the cost of living increases...
Trying to save up the extra money to "get out of Dodge" takes quite a while, when the percentage of income required to actually make that move seems to be a diminishing vision on the horizon.
"Stuff" happens, and folks get overcome by surrounding events. Also known as "Life"...
Then the less desireable elements of our society start to show up in our happy little enclaves.
Maybe as a next door neighbor, or on the next street over.
Could be that they, too, are looking for a nicer area to live, but invariably, their ilk follow along the path of migration, turning once nice neighborhoods into "hoods"...
We've been in our current home for just coming up on 20 years, and it's still a relatively safe place to live.
However, the gangbangers are near enough to give cause for concern, which raises the need for awareness and greater levels of security around the house.
Move?? Because of the threat level? Nope. Did it once 20 years ago, and lost about 30% of the value of the home.
As has been said before, we see this as our home. Not a house, but a home where our kids were able to grow up with a sense of stability.
We could have sold a couple of years ago for a significant gain/profit, but anywhere we would have wanted to buy would have been at a similarly inflated price.
We elected to stay put, and improve our "castle"...
As a last point to consider, we've invested a lot of time in our neighbors, knowing them, helping them, even "loving" them.
This is "our" (our familiy and the neighbor's) turf, and we'll keep an eye on it...