Small Salary in High Living Expense Area

How do people survive on small salaries in high living expense areas? It became obvious to me over the past few days that we just can't afford to live in the small 3 bedroom, 1 bath, 1200sq ft house we live in. at $1400 rent, $150 electric, $300 oil, total housing expenses come out over $1850/month. On a $3000/month after tax salary, this doesn't leave enough for food, vehicle fuel, phone, internet, tv, clothing, kids' allowances, being able to take vacations/day trips, saving, healthcare, birthday/christmas gifts, and the ability to afford a vehicle and insurance.

I started researching lower cost rentals in this area last night, and to get total housing expenses under $1300 you'd have to be in a 1 or 2 bedroom 600-800 sq ft apartment, usually outdated, in a poorly kept neighborhood. The only way to get something decent and worthy of raising a family of 4 with a cat and dog, would be to move out of the area completely. I took one area for example - North Carolina and found fantastic beautiful singles and townhomes around $900 - $1000, and with lower utilities total housing expenses easily come in under $1300.

If you are reading, what area do you live in? and what are the total housing expenses for a moderate size single or townhouse along with electric and oil/gas (if applicable)? I'm really curious as to what else is out there. Click comment/reply now!