How house prices are varying between US cities in 2021?

Posted On Friday, 15 October 2021 20:33

With historically low mortgage rates and low inventory, house prices across the U.S. have been on the rise throughout 2021. In many cities, the housing market has been overheating, most houses are sold in bidding wars as buyers rush to get their offers in. In this article, we will look at how house prices in different cities differ given the recent boom in the housing market, which cities have the most expensive house prices, and which ones have the most affordable ones. 

We will use the price per square foot as a basis for comparison between the U.S. cities. This metric allows you to measure what price you can expect to pay for a home depending on its square footage by knowing the price per square foot of a specific area. While the average price per square foot can vary in different regions and neighborhoods of a city, it still serves to give you a rough idea of the house prices. 

Most expensive cities

Manhattan, New York

Manhattan is one of the most expensive boroughs in the U.S. With an average house price per square foot at $1,792, a few can afford to purchase a place in Manhattan. The median listing price of a home is approximately $1.6 million, while the median selling price is a bit below $1 million. Manhattan is a center of entertainment, history, business, and art, which is why it is no wonder that owning a piece of property in Manhattan comes at a hefty price. 

San Francisco, California

San Francisco is another city where house prices have skyrocketed. The average price per square foot in San Francisco is $1,126. While this is almost 40% lower than the price per square foot in Manhattan, it is still a considerable price that most people cannot afford. It has a median listing price of around $1.3 million and a median selling price of approximately $600,000 higher than the listing price. Just like Manhattan, the city of San Francisco has a lot to offer. With the headquarters of many tech giants located there, San Francisco is a technology hub. 

Aspen, Colorado

The city of Aspen in Colorado is one of the most expensive places to live in the world. With its breathtaking mountain views and multiple ski resorts, many rich individuals choose Aspen as their winter vacation destination. The median price per square foot in Aspen is $1,079 and the median listing price is approximately $2.2 million. This means that one would have to pay around $2.8 million for a house of 2600 square footage. 

Most affordable cities

Even with the effects the pandemic caused on the U.S. housing market during 2020 and 2021, there are still some cities that offer affordable housing alternatives. Some of these cities include: 

Youngstown, Ohio

Youngstown, Ohio is one of the most affordable places to purchase a house based on the price per square foot. The median price per square foot of property in Youngstown, OH, is around $65. The median listing home price is $92,500 and the median selling price stands at $101,000. Youngstown housing market is a seller’s market where there are more buyers looking to purchase than houses available for sale. Part of the reason why Youngstown houses are so cheap is because of the low wages that the jobs there offer. Moreover, the city has high crime levels which scare off many from purchasing a property. 

Indianapolis, Indiana

The city of Indianapolis is one of the cheapest places to live in the U.S., not only in regards to housing affordability but to the overall cost of living as well. It has an average house price per square foot of $115 and the median listing price is approximately $205,000.  Just like Youngstown, Indianapolis also presents a seller’s market, where sellers have the upper hand. 

Kalamazoo, Missouri

Kalamazoo, MI, offers some of the lowest house prices in the U.S. The city has an average price per square foot at $117 and its median listing home price is $185,000. This means that to purchase a 2,000 square feet house, you would need to spend only $234,000. Kalamazoo comes with a low cost of living as well. Contrary to the other cities mentioned above, Kalamazoo, MI is currently a buyer’s market, where there are more houses available for sale than buyers looking to purchase. 

In conclusion, there are drastic differences between U.S. cities in house prices. Depending on whether you want to live in a busy city center or in a small friendly town, the house prices will vary dramatically. Once you decide on the city, it is useful to compare between neighborhoods and areas as the prices can differ even within the same city.

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