I just did a search on Realtor.com for homes in Amherst (which I assume is one of the more affluent Buffalo suburbs) vs. homes where I live in Montgomery County PA (outside Philly).
The price difference was not as much as I expected. In both places, you can get a nice 2500 sq ft home for about 300K. Still, you definitely seem to get more in Amherst than where I am--maybe the difference for equivalent homes is 100K.
Given the Philly economy--not a powerhouse, but still pretty massive--it's no wonder people would be willing to move here, get maybe 25% less bang for their housing buck, but have a higher salary and more job security. In and around most big cities, if you lose one job, there are often several others to take its place. In Buffalo, you often can't say the same thing.