Update on real estate: prices per square foot for new construction are lower than current housing
Synopsis
According to a new report by zillow, prices per square foot of new housing are generally lower in los angeles and throughout the united states。
The online real estate market company found that in may the median sale price for new housing in the los angeles metropolitan area was $1. 15 million, while the current price was lower at $0. 97 million, but the cost of new housing was $52 per square foot。
Nationwide, zillow found that in may, new houses were sold at a cost of $3. 50 per square foot, the most significant discount in at least six years。
Zillow states that these data are a “relatively cost-effective option” for buyers who focus on obtaining space at the most cost-effective prices。
The difference between the price of new housing and the price per square foot of existing housing in the cities (new housing is cheaper):
Not every city in the united states has built new houses that are cheaper than current ones. For example, the new building in san jose, california, is $216 per square foot more expensive than the current one. In san francisco, the gap was $137。
The difference between the price of new housing and the price per square foot of the current house in the cities (the new house is more expensive):
The report states that, prior to the outbreak, the price of new houses built nationwide was between $15 and $22 per square foot higher than the current one。
According to zillow, “builders have turned to smaller houses on smaller plots to attract buyers facing affordability challenges”
According to press observations and data surveys, newly built houses are usually two-storey compact houses with a hoa, while older houses are more expensive (high land and high potential) and not managed by hoa。
The construction of new houses provides modern design (more sophisticated) and safer management models through the hoa, but also leads to continued costs (hoa) and stricter controls of hoa, as well as potential constraints. Old houses may be more cost-effective in the long run. The absence of a monthly fee for hoa means that the owner can use these funds for personal savings or other expenses. In addition, older houses may offer better value (potential) per square foot of land, especially in the absence of strict hoo rules, where property modifications are free (provided the city passes the approval). Who is more expensive depending on the buyer's consideration。
