NJ is not nearly as homogenous as SD County. Many of the places on that link to craigs list are far out in the boonies or in the big time hood. Look in nice areas and you will see similar pricing and higher in many cases. My comment was also pertaining to COL not just RE purchase prices. Think 25,000 tax bills on a 500K home in a great area. think $1,000 plus utlity bills. Think $4,000 car insurance bills.
I lived there for 30 years. You are in my wheelhouse right now. People from there for the most part cant imagine moving cross country for any reason as they are so ingrained there. Good jobs are also much easier to find and the amount of wealth there is mind boggling.