Even if you're not a numbers person, it's almost impossible not to be alarmed by some of the inflation-related statistics floating around right now. This year, for example, inflation hit its highest annual rate since December 1981, and hasn't stopped there. Additionally, the overall price of goods in America has increased by 224% since 1980. Obviously these realities have reverberated across industries, affecting many markets and Americans' general way of life.
The real estate market is one such industry that has taken a beating in the face of inflation, even though there are some affordable towns out there. The online real estate education platform Home Bay recently released a comprehensive report that shows the ways in which home prices are actually outpacing inflation rates.
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"The median sale price per square foot for new single-family homes has exceeded overall inflation by 139% since 2020," they report. And as compared to the median sale price per square footage of single-family homes in 1980, prices have increased by 310%, with typical American families paying around $169 per square foot.
The report takes a deep dive into analyzing the evolution of the amount of square footage in single-family homes, the cost of that square footage, and what metro areas people should look at to get the biggest bang for their home-buying buck.
Top of Home Bay's list of cities with the cheapest square footage is Memphis, Tennessee, with 2021 data indicating a median price per square footage of $92, a median square footage of 2,630, and a median overall price of $242,500.
Indianapolis, Indiana is next on the list with a median price per square footage of $134, followed by Houston, Texas which sees a $167 median price per square footage.
Here's the entire list of 10 cities with the lowest price per square foot, according to Home Bay's report:
- Memphis, TN: $92
- Indianapolis, IN: $134
- Houston, TX: $167
- Kansas City, MO: $171
- San Antonio, TX: $172
- Richmond, VA: $182
- Atlanta, GA: $182
- Dallas, TX: $186
- Raleigh, NC: $191
- Charlotte, NC: $198