Last month, Point2 took a look at what first-time buyers on a budget could purchase for $150,000 across the country in the nation’s largest cities. It was pretty slim pickings amid today’s price and mortgage rate increases. This month, Point2 is examining homebuying possibilities for those same city buyers who have larger budgets and are looking for more space and a bigger home.
With median home prices reaching a national all-time high of $405,000 and an increase in the average square footage for new single-family homes, Point2 analysts review how much space $400,000 would buy in the nation’s 100 largest cities.
Key findings:
- In the top 10 largest cities with the most affordable square footage, $400,000 buys over 3,000 square feet, with Detroit, Cleveland and Toledo providing the most space;
- At the other end of the spectrum, $400,000 buys less than 600 square feet in the top 10 U.S. cities with the most expensive square footage;
- Six of the U.S. cities with the most expensive square footage offer less than 500 square feet for the new median, and Manhattan comes in last with a mere 267 square feet;
- $400K buys more than 2,000 square feet of living space in Texas, but less than 1,000 square feet in San Jose, Los Angeles and San Diego;
- You can get twice as much home for $400,000 in Miami, Denver, Riverside or The Bronx than in San Jose, Irvine, or San Diego.
The takeaway:
“The two cities that break the mold are (perhaps unsurprisingly) in Texas: Houston and San Antonio both offer around 2,400 square feet for the national median, which makes them really stand out among the top 10 most populous U.S. cities,” wrote Andra Hopulele, author of the report. “Whether they prefer tall or sprawl, with their advantages and shortcomings, the pandemic and the new work-from-home setting have definitely given many buyers more options and food for thought. Yet, depending on their new need for space—and their financial capabilities—it remains to be seen how many buyers will opt for more space and what these changes will mean for local housing markets.
To read the full report, click here.
