American homebuyers still face an expensive market as housing costs continue to climb. With interest rates around 7%, most buyers nationwide must sacrifice the size of their home or risk getting pushed out of their local market altogether. Without a sign of home prices or interest rates dropping in the near future, potential buyers must weigh the risks of an unaffordable market and decide whether they’ll compromise on size or location.
In our third annual report, we calculated how much square footage homebuyers can afford across major cities in America with the national median purchase price of $400k. Our findings provide insights for buyers about where their dollar stretches furthest, from a shoebox in New York to a sprawling home in Ohio.
Key Findings
- With a current national median home price of $400k, San Francisco, CA, has the smallest home, 417 square feet, and Detroit, MI, has the largest, 5,200 square feet. .
- Homebuyers in the Midwest have over eight times the purchasing power in square footage compared to buyers on the East and West coasts.
- Despite high housing costs, buyers in some cities can pay a low cost per square foot. In fact, buyers in Ohio have multiple opportunities to get a bang for their buck, as both Cleveland and Toledo made our Top 5 list.
- Three of the most expensive cities reside in California – San Francisco, Fremont, and San Jose.
Cities With the Most Space for $400K
1. Detroit, MI — 5,200 square feet
Detroit has the lowest price per square foot of all the cities, and buyers could purchase a substantial 5,200-square-foot home for $400k. Detroit buyers can acquire 12.47 times more space than buyers in San Francisco.
2. Cleveland, OH – 4,788 square feet
Cleveland came in second in our rankings, where the price per square foot is $83.54. In this city, a $400k budget can purchase a 4,788 square foot home.
3. Toledo, OH – 3,882 square feet
Ohio made our top rankings twice, with Toledo also earning a spot on the list. Prospective buyers in this city will pay a reasonable $103.03 per square foot.
4. Wichita, KS – 3,345 square feet
In Wichita, families can purchase a home with 3,345 square feet for $400k. With a price per square foot of $119.59, buyers can acquire larger pieces of property here compared to coastal cities.
5. Memphis, TN – 3,181 square feet
Memphis became more affordable for buyers, with the cost per square foot decreasing by 3.38% from 2023. Buyers can now acquire 3,181 square feet with a $400k purchase price.
Cities with the Least Space for $400K
1. San Francisco, CA – 417 square feet
While the price per square foot for residential homes in San Francisco dropped 0.28% to $959.07 this year, the city remains the most expensive city on the list. A buyer with a budget of $400k can only afford a home with 417 square feet, which measures out to a small studio apartment fit for one adult.
2. New York, NY — 421 square feet
New York City is only $9.07 more affordable per square foot than San Francisco, coming in a close second place. Homebuyers purchasing at the median national home price can expect to acquire a property with 421 square feet.
3. Fremont, CA — 463 square feet
Fremont became more expensive for buyers this year, with the price per square foot increasing 8.78%. A home in the city now costs $864.83 per square foot.
4. Boston, MA — 581 square feet
Those looking to purchase property in Boston will need to pay $831.68 per square foot. With a $400k budget, they can afford a home that spans a modest 481 square feet.
5. San Jose, CA — 497 square feet
San Jose rounds out our most expensive list and is the third city in California to join the rankings. The price per square foot has increased 5.80% since last year, and buyers now pay $804.44 per square foot.
Methodology & Limitations
Methodology
To create this report, we analyzed home price data taken from over 5 million for-sale listings on RealtyHop advertised in the past 12 months. Listings included residential single-family homes, condos, co-ops, and townhouses but excluded those that did not list square footage.
To calculate the median price per square foot, we divided each listing’s price by its total square footage. These statistics were then aggregated based on the area, with the median taken for each city.
We used the National Association of Realtors’ latest May 2024 median existing-home sales price of $400K to calculate the square footage one could purchase at that price.
Limitations
While we’ve used the citywide median price per square foot in our calculations, one limitation of our study is that this statistic is usually not uniform across a city. Our findings are meant to paint a picture of the differences across cities (and broadly within a city) and not meant to dictate the exact properties you could buy at any given price and size.
Have questions or comments about this report? Reach us at [email protected].
