New Report Looks at Home-Price Increases Compared to Square Footage

A new report from real estate data firm Clever tracks the increase in median single-family home price per square footage in the U.S. The report, pulling on data from the U.S. Census Bureau, the U.S. Bureau of Labor Statistics, and Realtor.com, notes this upward trend is tied to overall increases in cost of living and homelessness throughout the U.S.

Divided into sections, the report looks at both current (2022) data and how conditions have changed over time, stretching back to 1980 and highlighting conditions during the Great Recession. Several sections rank the 50 most populous U.S. cities in relevant patterns, designed to offer a localized snapshot of this trend.

Key findings:

The national median price per square foot sits at $232 in 2023.
The median square footage in a single-family American home was 2,383 feet in 2022, about a 52% increase. For reference, the minimum square footage is 120 feet.
The average number of people per household is 2.6 in 2022, a slight increase from 2.51 in 1980. This comes out to a 38% increase in people per square foot (916 in 2022, 569 in 1980).
Price per square foot increased 368% from 1980 to 2022 ($41 to $192).
- The rise in price is 1075% higher than the corresponding increase in square footage during this time period.
- Adjusted for inflation, however, the increase is only 32%: $146 to $192.
Since 1980, increase in median price per square footage has consistently outpaced inflation by 44%. This margin rose by 75% in 2022.
Interestingly, price has risen even as median square footage has fallen. In 2018, median square footage was 2,435 (2% higher than in 2022), but the median price per square footage was only $156 (about 23% lower than in 2022). This means, in effect, buyers are paying more for less space than they were five years ago.
- The report notes this trend goes back to the 2008 Financial Crisis; price per square foot began to rise consistently in 2011, even as median square footage has declined.
The report argues that, in general, homebuyers are worse off today than in 1980 or 2008.
- 30-year-old homebuyers in 2022 pay 161% more per square foot than baby boomers at a similar age.
- In 2008, the median price per square foot was $104 (Price: $232,100, footage: 2,234). This is a 36% increase adjusted for inflation and an 85% increase when unadjusted.