Living stacked on top of people and paying way more to do it. You can live like a king for the same price in a small town.
Absolutely. But, can you find a job that pays as much as many do in NYC? It is likely that the town is too far a commute to the city if the cost of living is significantly lower.
I have family in Bronxville, NY which is 15 miles from Manhattan. Trust me, there is nothing cheap about living there, although you do pay less per sq. ft. which is, $331 on average. On the other hand, houses are pretty large. Presently, there are 148 homes for sale in Bronxville ranging in price from $99K to 10M.
When I was a tiny tot, my parents bought a small post WWII house in West field, NJ. and my dad commuted 28 miles to NYC for his job. Today, homes in West Field are comparable in price to those in Bronxville.
My grandparents lived in South Orange, NJ which is 23 miles outside NYC. My grandfather was a corporate attorney who commuted into Manhattan. Today the median price per sq. ft is $275. slightly less than the other two cities I exampled. They had a very large old Victorian on a big lot with a garage/barn and a gardener's cottage. Just for curiosity, I checked today's estimated value on Zillow which is $937K.