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Inverse Relationship: Size vs. Price

It may sound ironic, but buying a bigger house is cheaper for your wallet. Yes! A bigger house cost less than a smaller house. Let me show you why. There's an inverse relationship between the size of the house and the price per square foot of the house. I gathered data from Realtor.com by getting the following information from 18 houses on the real estate market today (9/23/2018) in the city of La Crescenta, California: Asking price and Size of house structure. I did simple division to find the price per square foot by dividing the total cost of the house by the square footage of house structure. By finding the price per square feet of these 18 different houses, I found a trend; that the bigger the house structure, the cheaper the price per square foot. Take a look at the chart below.

 Graph: Inverse Relationship

Table: List of 18 Houses on the Market




Comments

  1. UnknownSeptember 23, 2018 at 11:48 AM

    Cool!

    ReplyDelete
  2. UnknownSeptember 26, 2018 at 2:19 PM

    Very cool! It's interesting and definitely something to remember to think about once I start looking for a house!

    ReplyDelete
  3. UnknownSeptember 26, 2018 at 2:31 PM

    This is a very cool idea! It's embarrassing to just go off what is affordable, but actually what could be more affordable is buying bigger! Wow! What a concept! Thank you! :)

    ReplyDelete
  4. The True Squishy MuffinsSeptember 26, 2018 at 6:12 PM

    This is very interesting. I am looking into buying a home and it definitely something that is difficult on one teaching income. The downside is, while the larger plot sizes are cheaper per square foot, the entry price to buy a home at all is still much too high. Once you can breach that $400,000 barrier, you can start moving through different size lots quickly.

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  5. UnknownSeptember 26, 2018 at 7:47 PM

    Great posts! Thanks!

    ReplyDelete
  6. BenjaminSeptember 27, 2018 at 4:09 PM

    This is neat -- if potentially depressing for folks not yet invested in the housing market in SoCal. I can attest that when we sold our TINY (984-square-foot) house last fall, it was for a pretty high price per square foot (about $488.82/sqft). So the logic holds!

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  7. Brian FoleyOctober 10, 2018 at 2:56 PM

    Buy why? Is it because Bung Heav is known for very small (but beautiful) houses?

    ReplyDelete
  8. UnknownOctober 17, 2018 at 7:42 PM

    It is because it is all about location. You are paying big time for the land. So the square footage pays a smaller role than you would first think.

    ReplyDelete
  9. A CharkyOctober 17, 2018 at 7:49 PM

    I live in Montrose (town next to La Crescenta) and homes prices fluctuate based on where they are in relation to Foothill Blvd.

    ReplyDelete

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