Definitions

Price per Square Foot Definition

Price per Square Foot is a measure of value. Think of this stat as answering the question – “How much house am I getting for my money?”

This is particularly important if you are analyzing a market with a diverse mix of homes. For example, one 3-bedroom home (or Condo…) could be 1800 square feet and another in the same neighborhood could be 2200 square feet. If they are both listed at the same price, you’d be able to “get more house” by purchasing the 2200-square foot home (all other factors equal such as condition, lot size, highway access, school district, and all the other stuff that affects home prices…).

When examining the Price per Square Foot stat in a market area – a city or zip code – it’s very helpful to know “how much house you’re getting for your dollar.” That’s why we calculate Price per Square foot.

Keep in mind that this statistic can limited in some states – Georgia and New Jersey are two examples. In these states, it’s not permissible to advertise square footage information. However, there are times when properties listed for sale do include square footage information so we’ll calculate it for you.

Price per Square Foot is also very helpful to compare based on the general price zone in which you are buying or selling a home. Here at Altos Research, we divide up the market into “Price Quartiles” (see here for a definition – viewtopic.php?f=7&t=14). By looking at Price per Square foot of homes based on your price zone, you can really get specific on how much house you’re getting for your money.

[Data by "Price Quartile" is available to subscribers.]

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