Seems interesting.
As for locale it depends on the feel you're looking for, which begs the question. What's the overall tone of the story?
Is it gonna be more like (A) "we're a small group of survivors trying to find a home", (B) "we're a ragtag bunch of misfits with a clear goal", or (C) "we're just honest folks trying to live nicely here in this crappy world"?
From what I read it seems like you're going for C. And if so are we gonna be a bit more dark with a man vs evil man kind of scenario full of roaming bandits, evil folk, crazed lunatics and the like, or is it gonna be more like man vs nature wherein the biggest issue is that we don't have any food, we're stuck in the middle of nowhere, and there's a storm a comin?