T
he location of a home plays a significant role in determining its price, with proximity to desirable areas often speeding up the sales process and increasing the sale price. Regional differences also impact prices, making it essential to consider these factors when budgeting for a home.

    For instance, if you're working with a $400,000 budget, you may find better value in the Midwest compared to the East Coast. According to RealtyHop's analysis of home listings between August 2023 and July 2024, buyers in the Midwest have over eight times more purchasing power in square footage than those on the coasts.

    The National Association of Realtors reported a national median sales price of $416,700 for existing homes in August, with significant regional variations. The Midwest had a median sales price of $315,400, while the Northeast averaged $503,200 – a difference of $188,000.

    To illustrate these differences, the New York Times compared three $400,000 listings in Massachusetts, Maryland, and Minnesota. Here's what you can expect to get in each state for that price:

    In Massachusetts, a 1,424-square-foot ranch house from 1953 on a 0.7-acre lot is available for $280 per square foot. The home features two bedrooms, two bathrooms, a detached garage, and an updated kitchen.

    In Maryland, a 1,534-square-foot brick rowhouse from 1875 costs $257 per square foot. This two-bedroom, two-and-a-half-bath home boasts exposed brick walls, hardwood floors, and granite countertops.

    Lastly, in Minnesota, a 906-square-foot high-rise condominium unit built in 2008 is priced at $441 per square foot. This one-bedroom, one-bathroom apartment features tall windows, hardwood floors, and access to the building's amenities like a gym and indoor pool.