Where the funeral takes place is entirely up to the family. Customs, traditions, and roots in the community all play a part. For many people, the place where the deceased had the most connections makes the most sense so that those who would like to attend the funeral can attend in person. These days, however, many people choose to offer a virtual funeral so location is not as important. Budget, of course, is also a factor. Relocating the deceased will add to the cost.
Unfortunately the answer is not straightforward or bound by any rigid rules. What works best for everyone in the family is probably your best bet.