What’s wrong with being overqualified for a job?

You may be overqualified for a job but at the same time unable to find any openings that - aside from the level of competency requested - might fit your requirements. E.g. trivial case, I may be overqualified for a job close to home that pays decently well, but the better fitting job is in a distant city and doesn't reward significantly more, so in the end I would earn less by doing something harder (after transportation costs) than I do at my current position.

Also I hate when it's like a segregated neighbourhood and then they give jobs only to their people, like no matter your qualifications.

Feeling underpaid

Ive been told this many times. But they would rather leave the position open instead of hiring.