NSR,
I think we are arguing two different points. I wasnt commenting on the cost of living, I was commenting on incomes being higher in those areas (and they are way underreported there also), that the higher incomes could better support the home prices there and that there is far less of a bubble in those areas. There is also alot more unreported income on the east coast as there are a lot more family owned businesses vs.nearly everything is a national chain out here. Walk into a family owned business on the east coast and offer to pay cash and you will reap a nice discount in many cases. Its an accepted thing back there.

BTW, I have family in the White Plains area (Somers and Briarcliff Manor).