Posted on 11/28/2020 8:46:52 AM PST by SeekAndFind
The bull market in hot urban retail and commercial real estate markets lasted for pretty much the entire post-crisis recovery period. But COVID has turned things around, and as people flee to the suburbs, it's worth taking a look at how valuations have declined.
While urban real-estate markets have taken a hit as people flee to the suburbs and more space, it's worth taking a look at how much space costs in different cities around the world. While foreign cities are of course cheaper than the top American metropolises, the numbers in some cases might surprise you.
Why $300K? On the one hand, because it’s the first round figure close to the national median listing price, and on the other hand, because according to forecasts for the next year, the market is headed there. We considered 1,700 square feet — the median living space in the US according to the Geography of Home Size and Occupancy report published by the National Association of Home Builders in 2011 – as a comparison base for our results.
Square footage price isn’t usually used as the only yardstick for home value, since location, property type, amenities and other factors play a significant role as well. But it does work very well if you just want to get your bearings and have a general idea about how much value you can get for your money.
In the United States, here are how things are looking like today
The median American home price, which is roughly $300,000, can buy a whopping 2,100 square feet in Houston, and nearly 1.5x that in Johannesburg. But in San Francisco and Singapore, that number buys just 300 square feet.
Hong Kong's infamously tiny apartments are probably not the ideal place for riding out a pandemic. But that's why the city's real estate market has taken such a hit (well, at least that's one reason).
In the US, Houston appears to be the city that offers the best value, as buyers get the highest ratio of square footage per dollar. With the added bonus of living in one of America's largest and most economically vital cities.
As the formerly city-loving millennial generation sets its sights on the suburbs, and young adults who have fallen on hard times move back in with their middle-class parents, is it possible that cities like NYC could see the economic progress of the last 30 years slip away? Crime is already rising at an alarming rate, and not only in New York.
“An average sized home in Manhattan would cost upwards of $3,000,000”
800 square foot 5th floor, no elevator, grimy and high crime....gee where do I sign up for that? /s/
Never have understood the attraction.
Give shellsea clinton a call and she can fill you in. :-)
Probably so, but that would make for a hell of a long commute to work! And I doubt I find a job in Arkansas with anywhere near the income I can make in Manhattan.
As always, location, location, location, dictates the price.
But I'm glad I don't live in Manhattan these days. Real estate in my neck of the woods is rising fast because so many city dwellers want to move out to the suburbs.
While the article says $300,000 buys 300 sq ft in San Fransicko, that’s misleading. The cheapest house in twice that price (and yes, twice that size) in a marginal neighborhood on only a 1700 sq foot lot. I cite the teeny weeny lot size because it’s being advertised as a “developer’s dream” (or tear- down), meaning the realty broker doesn’t believe a buyer would want to live in it in its current condition
In Manhattan you must spend at least $1,000 a sq ft for something decent.But that may be less now thanks to the virus.
AND ... you don't have to worry about the street excrement in Houston!
Housing in Houston is affordable, but to quote the baseball player Richie Auburn, “Houston is the only city where women wear insect repellent rather than perfume.”
Yeah, the mosquitoes are ferocious here.
You mean Chelsea Clinton-Hubble?
“that may be less now thanks to the virus”
Don’t forget the increase in crime due to their wonderful leaders.
True
A nice house and about 20 acres in NH.
RE: A nice house and about 20 acres in NH.
You can have 20 acres. At my age, I don’t have the energy to maintain that large a property :)
When I think about Manhattan Residential, I am always reminded of the great 1970s Broadway & Movie “6 Rms Riv Vu” by Bob Randall. If I recall correctly, the joke was that you had to stand on the toilet, bend awkwardly in looking out the window for the smallest sliver view of water.
Good luck in the coming Mayoralty Election, will any be better than Wilhelm?
Well, I refer to he as ‘scupper lip’.
I’ll just hang on to my 2 acres and 1300 sq ft site built custom home and 1300 sq ft mobile home for relatives for less than half of that.
But why? With Bill and Chirlaine, isn't life in the Big Apple heavenly?
“Never have understood the attraction (NYC)”
I have lived in large cities and currently live in a town of less than 400 people on a small farm.
Large cities are lots of fun and easy to find prospective marriage material.
If somethiong happened to my wife I would move back at least temporarily to a larger city to find a new wife.
My little town has nothing. All the women are obese, tattoed up with zero ambition
You don’t maintain 20 acres when all but one is wooded.
You enjoy the scenery and wildlife outside your window.
My little town has nothing. All the women are obese, tattoed up with zero ambition
You can always order a new wife (mail-order bridge) over the internet. A lot of them have warranties now.
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