Understanding the benefits and limitations of a home’s price per square foot can signal whether you’re getting a deal or paying too much.
One way to get a quick idea of a home’s value is to look at the cost per square foot. When you’re shopping for a home, price per square foot can give you a rough idea of whether the seller’s asking price is a reasonable one — or at least get you asking questions if a home you’re considering is out of line with the pricing of similar homes that have sold nearby.
Price per square foot can also indicate where home shoppers might get the best value for their dollar. To that end, Zillow® analyzed the top 50 U.S. metros to see which had the lowest and highest price per square foot for a typical home.
The analysis, based on April 2024 data, found that the median price per square foot in 10 of the least expensive metros came in under $164, with the lowest being Cleveland at $124 a square foot. The top 10 metros with the highest price per square foot had prices ranging from $328 to $1,004 per square foot. Median represents the halfway point, where half of the homes have higher costs per square foot and half have lower.
The list includes a number of metros that were also on Zillow’s list of the 25 most affordable places for buyers in 2024, but not all of those affordable markets had square footage values low enough to make the list. This is because the affordability measure takes into account the value of a typical home in that metro, median household income, and the monthly mortgage payment needed to buy a typical home given current interest rates and 20% down toward the purchase.
Price per square foot takes into account a host of different things that help determine a home’s value, including location, the home’s age and condition, desirable features and finishes, and other things that buyers are willing to pay a premium for.
With that caveat, here are metros with the lowest and highest median cost per square foot:
Top 10 metros with the lowest median price per square foot
| Metro | ppsf all existing | ppsf all nc |
| Cleveland, OH | $124.40 | $202.00 |
| Memphis, TN | $136.80 | $172.60 |
| Birmingham, AL | $141.00 | $173.10 |
| Oklahoma City, OK | $150.00 | $184.10 |
| St. Louis, MO | $151.90 | $202.40 |
| Pittsburgh, PA | $157.10 | $214.30 |
| New Orleans, LA | $157.40 | $175.70 |
| Indianapolis, IN | $161.90 | $169.30 |
| Houston, TX | $162.80 | $173.50 |
| Cincinnati, OH | $163.70 | $195.20 |
Top 10 metros with the highest median price per square foot
| Metro | ppsf all existing | ppsf all nc |
| San Jose, CA | $1,003.70 | $1,018.20 |
| San Francisco, CA | $766.70 | $777.20 |
| Los Angeles, CA | $625.50 | $594.50 |
| San Diego, CA | $597.80 | $605.20 |
| Seattle, WA | $434.30 | $467.00 |
| Boston, MA | $414.60 | $485.30 |
| New York, NY | $375.00 | $451.40 |
| Sacramento, CA | $340.60 | $312.30 |
| Washington, DC | $332.30 | $285.30 |
| Denver, CO | $328.60 | $292.60 |
How is price per square foot determined?
The seller’s agent or listing agent evaluates a home and looks for comparable homes nearby that have recently sold. They’ll divide each home’s sales price by the amount of space in the home. So, for example, if a 2,000 square foot home sold for $400,000, the agent would divide the sales price by 2,000 to get a $200 price per square foot for that home.
Comparing homes to see what, if any, factors could add or detract from the value, the agent makes an educated estimate on what a buyer might be willing to pay for the home. That value is represented in the sales price, and in the price per square foot.
A buyer’s agent evaluates that number with the same educated eye to gauge whether the sales price is reasonable, or whether the home is overpriced or represents a deal for a buyer.
Does price per square foot include the entire home?
Not necessarily. The measurement that goes into calculating the price per square foot generally includes only finished or heated living spaces in the home. It does not usually include unfinished basements, detached garages, sheds or other unheated or unfinished spaces that might be converted into living areas — although those things may be priced in when the agent is determining a home’s overall value.
Data on the size of any given home and records of its sale usually come from the seller’s agent who lists the property for sale or from public sources, such as the county tax assessor who assigns real estate values for tax purposes. Those values can vary based on local listing practices and on the method the county tax assessor uses to collect home size information.
Homes on Zillow count only finished space in the home as reported by one of the sources listed above. That square footage number becomes part of the data used to calculate the Zestimate, or estimate of the home’s value, as well as the price per square foot based on the current listing price and any previous sales.
What other things beside location and condition can affect the price?
Size of the lot, for one. Land values are included in a home’s total value, which also includes the value of the structure. Putting a larger structure on a lot could result in a higher price overall, but could have a smaller price per square foot than a smaller home on a similar sized lot.
The land usually represents the biggest cost to buyers, so the lot size can affect the price per square foot. So while a small home in a neighborhood where land values are high could sell for less than larger homes nearby, the value of the land could make the price per square foot larger than the bigger home.
Why did you count new construction and existing homes separately?
The square foot analysis considered each group on its own to make the comparisons more accurate.
Newly built properties as a group are selling for about $65,000 more than existing homes. On a cost per square foot basis, however, new construction homes nationally in April 2024 were closing the gap with existing homes, commanding $209 versus $211 for existing homes. The shrinking price difference could be due to the tendency of existing homes to have larger lot sizes.
We also didn’t want to group new construction with existing homes due to other factors that play into the affordability and value of new construction. For example, builders are often able to give concessions around mortgage rates and other perks that enable builders to mitigate the price peaks and valleys that come with the changing seasons. And since brand new homes likely require less upfront investment for repairs and other work that existing homes may need, the rules and market dynamics may be different than those for existing homes.
Still, about a fourth of newly built homes on the market saw a price cut in April and that share rose to 29% in May, compared to 24% of existing homes that received a price cut in May.
What other uses are there for price per square foot?
Price per square foot can be a helpful guide for deciding on home improvements. They allow you to weigh the cost of a project against its expected return, especially if you’re thinking about finishing space that might otherwise not get counted as liveable square footage. For example: Let’s say you have an unfinished 800 square foot basement that was not counted as usable space when you bought the home. If you spend $10,000 to turn the basement into a family room, the cost of improving the space works out to $12.50 a square foot ($10,000 divided by 800.) But the return on the investment is likely to be much larger than that because that 800 square footage is now usable space that could add to the home’s value.
How can I use price per square foot when deciding on an offer?
You can use it to inform your discussions with your agent, who is an expert in the local market and has been inside many of the homes that will be used as comps. Your agent can explain the particulars of what goes into any home’s value. If the value is higher than comparable homes in the area that have sold, ask why. Has the home been extensively updated or outfitted with high-end finishes? Have all the liveable spaces been maxed out or is there potential to build equity by improving or turning unfinished spaces into finished ones? Once you understand the benefits and limitations of square footage, you can use it as a quick snapshot to investigate whether you might be getting a deal or paying too much.