New York Tops List of Most Expensive States for Homebuyers
Want to buy a house in New York? Good luck.
New York tends to be one of the more expensive states to call home. The state leads with some of the highest grocery, gas, energy, cable, internet, and other day-to-day expenditures.
Despite the high sticker prices, people still want to move to the Empire State and continue to snatch up homes the moment they hit the market. The state's attractiveness is bolstered by its strong education systems, higher salaries, job opportunities, and safety.
Nationally, home prices have hit record highs. Further driving up prices are the large interest rates because the Fed is wrestling with skyrocketing inflation.
But here in New York and for most of the United States, home prices continue to grow out of reach for the average American.
Most Unaffordable States
Agent Advice, a website run by real estate experts, conducted a study to see what states give the least bang for a homebuyers' buck. They used Zillow data to look into the areas that spend the most on the smallest homes and calculated who is spending the most on a square foot of property.
After comparing average property sizes and prices, the study claimed to have found the most expensive states to own a home in America.
At hardly a shock was Hawaii, with the average cost of a single square foot coming in at $695. The reason why the cost is so high is because the average price of a home on the islands come in at a whopping $850,000 and homes there average roughly 1,240 square feet.
The District of Columbia and California finished in second and third place, respectively, followed by Massachusetts.
Rounding out the top five was the Empire State.
High Costs for Little Square Footage
While homes in New York had a slightly higher average of square footage than the rest of the nation, the state's housing costs were still above and beyond the national average.
New York's house prices were the fifth highest nationwide, with the average home being sold at a lofty $632,000. Agent Advice calculated that the average size of a house in the Empire State was roughly 1,620 square feet, which means New Yorkers are paying about $369 per square foot.
The Top 10 Most Expensive States
Here's a breakdown of the states where homebuyers may struggle the most to find a home within their budget.
- Hawaii (Average price per square foot: $695)
- District of Columbia (Average price per square foot: $540)
- California (Average price per square foot: $455)
- Massachusetts (Average price per square foot: $409)
- New York (Average price per square foot: $369)
- Washington (Average price per square foot: $322)
- Montana (Average price per square foot: $308)
- Oregon (Average price per square foot: $304)
- Rhode Island (Average price per square foot: $295)
- New Hampshire (Average price per square foot: $287)
The state that offered the highest average square footage was 11th-place Colorado, which came in at 2,176. The average price per square foot there was $284.
Montana had the second-highest square footage per home, with an average of 2,134 square feet.
Agent Advice said regarding this study:
With growing families and more people choosing to work remotely or in a hybrid role, the size of a home is becoming increasingly important. This study offers a fascinating insight into the areas that offer the least space in a property for the highest value, offering any potential homebuyers a clearer vision as to what a home in each state can provide.
A list of the most-affordable states was not provided at this time.
Do you think home prices will ever stabilize in the U.S. or will owning a house grow farther out of reach for Americans?
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