We just have more build able land here. A $260K house here will only use $20k to 30k for land cost. Also our labor is cheaper. So a new 260k house here is typically going to be a 2300 sq ft two story house, 3 or 4 bedrooms, 2-3 baths, and two car garage in a new neighborhood. I'll bet your land price is at least $120k for a starter home like you described.

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Jim Luttrall
Mr. Inspector.net, Inc.
Allen, Texas 75002