"We live in a very small town, Highlands, North Carolina, population about 1,000. It has two and a half grocery stores, a couple gas stations, etc.. Everything for sale here has to come up an hour’s drive on winding mountain roads from any direction. Everything here costs more. "
You forgot to mention the town of Highlands exists as a mountain tourist/resort town where the population quadruples during the summer/fall season and is a place where real-estate prices have reached the level of ridiculous, beyond the means of 90% of the people in this nation.
In addition to having to suffer only two and half grocery stores there's an abundance of seasonal, gourmet restaurants, fudge shops, antiques, boutiques, art galleries, etc. which help ease the sacrifice of a spartan existence when living there during the winter months.