Where should I live? Real estate is so expensive?!

I am driving myself crazy at 29 y/o thinking about how hard it is to afford a house/townhome. I live in Maryland and I can't find anything nice for less than $300K. I make about $105K, but I really don't want to dump all my savings (not including 401K) into a mortgage DP. I am willing to put down 10%.

Figuring the 10% in, and what would be a good financial decision (paying 30% of take home pay) when buying a house, I see I cannot afford anything in a decent area in Maryland. I would have to buy something at $200-225K to kep within the 30% budget for mortgage.

I have a wife and baby coming soon. I really don't know where to go so I can buy a house (my job is very flexible as to where I can live). I am from Florida, but moved to Maryland 11 months ago.

Florida is not an option. Less pay and houses are just as expensive in decent areas (if you don't already get outbid).

Any advice helps! I am hispanic, so has to be a place with open minded people (not just a latino driven city or state like Florida.

Thanks!

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