Looking at Northville, MI, a rather nice suburb of Detroit, with excellent schools. Not fancy/trendy. Not the super-wealthy, amenity-filled Birmingham-Bloomfield area, the region's traditional wealth center.
When I do a Zillow search, using your criteria (3 bed/bath, min, 2,000 ft.) I get over 200 listings, and only about a dozen are under 400k. I get far more listings over $1 million than under 400k. Granted, these are asking prices, and homes usually sell for under ask (sometimes well under ask).
Still, even in the suburban Midwest, if you want a family-sized home, with good schools, in what is considered a nice area, there aren't that many options in/under that range. You have to go out to the boonies or sacrifice school quality if you want a family-sized home close to the national median.
https://www.zillow.com/northville-mi...eds/3.0-_baths