Norm, I've been building, new homes in KS for 20+ yrs now, around 220 the last time I thought to count them all up. Your friend is correct regarding the cost of living and home prices. Even with the run-up in real estate values over the past several years, nice homes are cheap in the midwest. Wichita KS, Tulsa OK, Springfield MO, that whole area is pretty neat. I build in NE Oklahoma and SE Kansas for the most part. Nice 3 bed, 2 bath, 2 car garage homes on full basements are plentiful in the 130K and up range. I hang out with 2 FAST racing buddies who live in Erdenheim and Oreland PA. It's a neat place, but definitely crowded.
PS Don't worry about tornadoes either, a warning siren will always sound just about 10 minutes after a twister hits.