In its third annual RealtyHop Housing Report, it calculated how much square footage home buyers can afford in major U.S. cities with a national median purchase price of $400,000. The results give buyers insight into where their money goes the furthest, from a shoebox in New York to a sprawling home in Ohio.
“American homebuyers still face an expensive market as housing costs continue to rise. With interest rates near 7%, most buyers across the country must sacrifice home size or risk being priced out of the local market entirely,” RealtyHop’s report said.
And he adds: “With no signs of home prices or interest rates coming down in the near future, potential buyers must weigh the risks of an unaffordable market and decide whether they will compromise on size or location.”
Key findings from the report:
· With a current national median home price of $400,000, San Francisco, California, has the smallest home at 417 square feet, and Detroit, Michigan, has the largest at 5,200 square feet.
· Homebuyers in the Midwest have eight times more square footage purchasing power compared to buyers on the East and West Coasts.
· Despite high housing costs, buyers in some cities can afford to pay a low cost per square foot. In fact, buyers in Ohio have multiple opportunities to get good value, with both Cleveland and Toledo making our top 5 list.
· Three of the most expensive cities are in California: San Francisco, Fremont and San Jose.
Cities with more space for $400,000 dollars
1. Detroit, MI: 5,200 square feet
Detroit has the lowest price per square foot of any city, with buyers able to purchase a 5,000-square-foot home for $400,000. Detroit buyers can purchase 12.47 times more space than San Francisco buyers.
2. Cleveland, Ohio: 4,788 square feet
Cleveland came in second in our ranking, where the price per square foot is $83.54. In this city, a budget of $400,000 can buy a 4,788 square foot home.
3. Toledo, Ohio: 3,882 square feet
Ohio took the top spot twice, and Toledo also earned a spot on the list. Prospective buyers in this city will pay a reasonable price of $103.03 per square foot.
4. Wichita, KS: 3,345 square feet
In Wichita, families can purchase a 3,345-square-foot home for $400,000. With a price per square foot of $119.59, buyers can afford larger properties here compared to coastal cities.
5. Memphis, Tennessee: 3,181 square feet
Memphis just got more affordable for buyers: Cost per square foot decreased by 3.38% starting in 2023. Buyers can now purchase 3,181 square feet with a purchase price of $400,000.
On the other hand:
San Francisco, CA: 417 sq ft
While the price per square foot of residential homes in San Francisco dipped 0.28% to $959.07 this year, the city remains the most expensive on the list. A buyer with a budget of $400,000 can only afford a 400-square-foot home, which is equivalent to a small studio apartment for one adult.
For more details on the report and its methodology, click here.
Keep reading:
· Real estate market myths affecting buyers and sellers in the US today
· US mortgage rates continue to fall this week
· Places homebuyers are moving to in the US