What is the significance of Willy's house and its location?

In additon to the previous post, I would add that Willy would always complaint throughout the play about the changes going on in the community, about how many things are being built, and  how it makes him feel like he is in some form of prison. It does feel like you are in a prison when you cannot escape the demons in your head. Think about addiction, depression, PTSD, bipolar disorder, guilt, and eating disorders. When you see anything around you that remotely reminds you of your inner weaknesses, you feel that they are surrounding you. 

 In Willy's case, his weakness is the inability to let go of the past, unfinished businesses, guilt, and frustration. Each time something builds around him, he is connecting that to himself. He has not been able to move on, just like he has not been able to move away, make better for his family, nor achieve forgiveness. Hence, the location is directly connected to his mentality: Not moving forward nor accepting that the world is moving forward.