The Average Price per Square Foot of a Home in the US Continues to Grow

The price per square foot of homes is a metric often overlooked by buyers who typically focus on the home’s total size, list price, and location. However, the metric is gaining more attention due to its significant increase in recent months. According to data from housing market platform Realtor.com, the typical listed price per square foot surged by 52.7% from May 2019 to May 2024. In comparison, the typical listed home price rose by 37.5% over the same period, reaching a nationwide median of $442,500.

The largest increases in price per square foot were seen in the New York City metro area, which saw a price-per-square-foot increase of more than 84.7%, followed by Boston, which saw a price-per-square-foot increase of more than 72.9%. On the other hand, the smallest increases were in Detroit (+23.2%), Baltimore (+24.8%), and San Jose, Calif. (+26.3%). 

“The price-per-square-foot metric is an important one to pay attention to,” says Realtor.com senior economist Ralph McLaughlin. “The change in that metric is a more solid measure of how much more a home is worth over time than looking at changes in median list price.”

In a nutshell, a home’s median list price can rise or fall without accurately reflecting what’s really going on in the market.

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