Agreed this is a huge exaggeration. You can buy a studio in midtown Manhattan for $300k or a 2 bedroom in Boston for $500k.
Two seconds on Zillow you can see tons of properties for $300k that are neither 250sf or plastered with bullet holes.
One of many examples:
https://www.zillow.com/homedetails/205-E-63rd-St-APT-10H-New...