With home prices remaining high, especially in cities across the U.S., potential homeowners may consider taking a look at suburbs for more affordable options. According to a new report from Point2, some suburbs boast prices per square foot up to 65% lower compared to the main city.
Point2’s new report analyzes the prices and living space in 777 suburbs (within a 30 mile driving distance) compared to the 20 most expensive cities they orbit. The report found that overall, the price per square foot of living space is lower in 603 of the 777 suburbs.
Key highlights:
- There are 11 suburbs where one square foot of space is significantly cheaper than in the city: Medley, Florida; Emerson, New Jersey; Lodi, New Jersey; Mount Vernon, New York; Huntingtown, Maryland; Waldorf, Maryland; Moonachie, New Jersey; Boulevard Park, Washington; Lawrence, Massachusetts; Passaic, New Jersey; and Paterson, New Jersey all have prices per square foot between 60% and 65% lower than the median price per square foot in their respective cities.
- Suburbs around Salt Lake City, Utah, have more affordable home prices than the main city: As opposed to Salt Lake’s price of $345 per sq ft, the suburbs range from $192 and $295 per sq ft.
- Suburbs around New York City and Washington, D.C. come in second and third, respectively: 98% and 97% of the suburbs are more affordable. In New York, 85 of the 87 nearby suburbs are more affordable than the city. In Washington, D.C., the price per square foot is much lower in 76 suburbs than in the city.
- Fourth is Boston, Massachusetts—specifically the suburb of Lawrence. Buyers looking for homes in Lawrence could pay 60% (or $387) less for each square foot of space compared to the city.
- Rounding out the top five is Honolulu, Hawaii, where buyers willing to move to Wahiawa will feel the biggest difference at a median price per square foot of $265, 36% lower than in the main city.
- At the other end of the spectrum, San Jose, California and Charleston, South Carolina have the fewest affordable suburbs at only 32% and 41%, respectively..
- Likewise, in San Francisco, Oakland and Sacramento, California, the shares of affordable suburbs are slightly higher at a little more than half.
Major takeaway:
“In some of the most desirable cities in the nation, the outlook is grim. Inflation and higher costs of living are affecting everyone, but the current financial conditions are simply bludgeoning home seekers. However, suburbs may still provide the silver lining that all aspiring homebuyers are looking for,” said Andra Hopulele, a Senior Real Estate Writer at Point2 and author of the report.
“Different people have different opinions when it comes to the suburb. Whether they are organic developments or artificial creations, suburbs are urban extensions that are seen as affordable ‘bedroom communities,’ emblems of urban sprawl or, on the contrary, enclaves of luxury and status,” continued Hopulele. “But, for home seekers and aspiring homebuyers, a suburb’s appeal comes from its more affordable housing options, promise of more space and more privacy. And, at a time when affordability is truly becoming a keyword in homebuyers’ vocabulary, these affordable suburbs might make the difference between fulfilling one’s homeownership dreams or simply continuing to hope.”
For the full report, click here.
