Currently, an American homeowner pays an average of $123/square foot for a house across the country. BUT, there is no “average” price per square footage once location is factored into the equation.
In a new report by realtor.com, the highest square footage price among the country’s 100 largest cities is over +$1,000/square foot. The lowest price per square footage is $42.
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Robert Dietz, the chief economist for the National Association of Home Builders NAHB), said, “In general, price per square foot is higher in markets where there is high demand but land is scarce due to underlying geographic constraints, ie. when people pack themselves onto a tiny island (Manhattan), price per square footage tends to go up.”
Additionally, higher construction labor costs and more regulated markets that have fees plus zoning restrictions make building more difficult and costly. Obviously, when price/square footage goes down, the amount of square footage a buyer gets goes up.
Comparisons of 10 Cities Regarding How Much Bang Buyers Get for Their Bucks
- Boston – median price/square foot = $1,160
- For $305,000, buyer gets 263 square feet
- New York – median price/square foot = $1,106
- For $305,000, buyer gets 276 square feet
- San Francisco – average price/square foot = $1,004
- For $305,000, buyer gets 304 square feet
- Los Angeles – Average price/square foot = $646
- For $305,000, buyer gets 472 square feet
- Washington DC – average price/square foot = $473
- For $305,000, buyer gets 645 square feet
- Seattle – average price/square foot = $454
- For $305,000, buyer gets 672 square feet
- Miami – average price/square foot = $313
- For $305,000, buyer gets 974 square feet
- Dallas – average price/square foot = $215
- For $305,000, buyer gets 1,419 square feet
- Chicago – average price/square foot = $193
- For $305,000, buyer gets 1,580 square feet
- Detroit – average price/square foot = $42
- For $305,000, buyer gets 7,262 square feet
Thanks to realtor.com and HousingWire’s Julia Falcon for source data.