As bigger cities see big price declines square footage has become more valuable in the suburbs, according to a new report from Redfin.
- Square footage in suburban neighborhoods was up 9.5% year-over-year in September to $206 per square foot. Urban square footage was only up 3.5%year-over-year in September to $205 per square foot.
- This was the first time since the suburbs have eclipsed urban areas since Redfin began tracking it in 2018.
Rural. Rural areas were also up 8.4% year-over-year to $180 per square foot.
Biggest Drops. San Francisco has seen the biggest decline of the major metro areas with a 6.2% decline year-over-year to $973.36 per square foot. New Orleans was a close second with a 6.0% drop followed by Philadelphia (-3.2%) and New York (-2.7%).
Analysis. Sheharyar Bokhari, Redfin Senior Economist, said buyers are choosing space over walkability in 2022. “Urban home prices soared in 2021 as homebuyers gravitated back to city centers as the pandemic waned and affluent Americans–motivated by record-low rates–decided they wanted the best of both worlds: Homes with plenty of space for working from home, but located in walkable areas near shops and restaurants…Today’s buyers can’t afford everything on their wish list, so many are prioritizing space over walkability.”
