Hate to say it, but welcome to the real world. For example, the largest theaters in San Diego hire only those within 50 miles (eg commuters who don't need housing) ... or from their casting call in NYC (with rare but occasional exception). Many LA-area actors, directors, producers and stage managers complain regularly about having to move to NY in order to get theater work in LA. On the flip side, there was a recent complaint by NYC TV writers that the folks only hired Hollywood-based folks for their scripts. "Locals only" happens way too often, and all the time.
On the one hand, it is a good thing for local AEA members to have a leg up on out-of-towners. It is their town, after all, and their intent is to make a living doing what they love where they are. But it also means folks from out of town (well, other than NYC) feel like there is no chance for them. It's a very challenging balancing act.