“What utter nonsense... there are plenty of 2/1 rentals available in these areas for around $1200 monthly. “
I was going to take a contract in Palo Alto until I checked the rents. Within 30 miles there was nothing under $2500/mo for 1 bed and closer in it was about $3,000/mo for a studio.
Of course one could live 50-60 miles outside the core and try to navigate that Bay Area traffic for the commute, and find cheaper rent.
My son rented a shed in someone’s yard last summer in Palo Alto for $1300. He was a college intern (with a $1700 housing allowance) so it wasn’t a step down from the fraterntity and he came out ahead.