The really terrible situation with no viable alternatives seems limited to SF and NY. (Maybe Paris? News about Paris always makes the cheap suburbs seem dangerous and non-French.)
So much for that...
Or is this merely a German joke about a rough town?
(Now I'm wondering if this is like the PRC, where Beijing has the rich history of a capital but bland areas like Shenzhen are where the money is made.)
The jokes about Berlin would be mostly about its horrendously mismanaged prestige project - the new airport.
I didn't say Mitte, though, but close to Mitte. Central areas like Friedrichshain, Kreuzberg, Prenzlauer Berg.