I don't think anyone has said that relocation would be a necessity, merely a possibility (that is, if you are only willing to consider APA-accredited internships). I live in a large city nowhere near NY and I readily can name at least half a dozen psychologists who have done grad school, internship, postdoc, and first job all inside a 20-mile radius. If you widen the radius to 100 miles the number becomes dozens. You might be under the mistaken impression that this is a local phenomenon, but in fact this happens just about everywhere that the option exists. A lot of people want to stay in their familiar/comfort zone. What's important to understand is it's just not a guarantee and there are trade-offs that come with it. What is exceptional about NY (and other popular locations) is that you have the locals who want to stay, plus many people from other places who want to move in, so the market is saturated and employers have the upper hand. The plum internships and jobs are really competitive. If you are comfortable with those odds, and don't mind being deeply in debt as a means to an end, go for it. Or not! Let us know what you decide to do.