I can do you one better OP. I live in a Caribbean country. By default, everything is costlier living on an island.
Our average salary here is around $9,000 per month - that is less than £1,000. University graduates make less than that entering the job market. I know people with 10+ years experience and a Master's degree making around $16-18,000 which is less than £2,000 monthly. For context, our minimum hourly rate is $20/hr. or £2.17 per hour and average house prices are between $1.2 - $1.7 million or £130-185,000. It's basically impossible for someone on a minimum or even average wage to buy a house here.
To top if off, because most of our food is imported, food is ridiculously expensive. My monthly shop works out to about $4,500 or about £500. I admit I buy certain things like extra virgin olive oil, butter not margarine etc. But that figure doesn't include anything really extravagant like alcohol/wine, salmon, steak etc.
Anyway, this isn't meant to be a race to the bottom. But it's really tough and I say that as a university graduate married to another university graduate both earning higher than average in our country, with no kids, and collecting rental income also. I do not know how average families are supposed to make it and I don't see things getting better anytime soon.