Not the case in many places. Average price of apartments downtown is much lower than a house in the suburbs… as a matter of fact if you want to live in a house, it’s unlikely that you will find one in the city.
Places vary, because work is merely a means to living, and different people value different styles of living differently. In many places, the exact opposite of what you just said is true. And it also varies by how far out in the burbs you go.
Even if that were accurate, my cost of living should not factor in the compensation I get for work.
I live in Atlanta. I would never move to New York without a huge pay raise, because New York is far more expensive than Atlanta. Therefore, a New York employer who wants me to be their employee must pay me more, or I will choose not to work for them. And this is reflected in the salary differences between Atlanta and New York. Go check out comparable jobs on carrerbuilder.com.
Purely within Atlanta, an employer who wants me to commute downtown is going to have to pay me more than an employer who is five minutes away from my home. An employer who permits me to work three days a week from home will have to pay me less than an employer who requires me to be in the office every day. This is because I personally value owning a home. If I didn’t value it, I may choose to live in an apartment downtown and reap the benefit of the higher pay.
That’s how markets work. Everyone chooses what (a thing) is worth to them.
This isn’t a hard concept.
If you’re bent out of shape about how much time you spend commuting, find a different job, or move somewhere else.