Price Per Square Foot Calculator
What is price per square foot?
As a consumer, the price per square foot serves to help you gauge how expensive a property might be to buy or rent in comparison with other similar properties. And similarity is the important point here, because looking only at the price per square foot of living space won’t necessarily give you an accurate indication of value. Indeed, when comparing properties, other factors should come into consideration, including the location, the type of property, the build quality, style, condition and any additional features (a swimming pool, for example).
What is the average price per square foot?
The average price per square foot of a house is calculated by taking the current market value of the house and dividing it by the total square footage. The average price per square foot of a single-family house in the U.S. is $122 per square foot of floor space, according to Statistica. (ref)
It goes without saying that the average price per square foot of property will vary based upon location, as well as many other factors that affect desirability and valuation. As an example, a square foot of floor space in residential California might be valued at over $250, compared to a similar square foot of floor space in Iowa at $100.
How to calculate the price per square foot
Price per square foot can be calculated by taking the figure for property price or monthly rental and dividing it by the total square footage of the living space (commonly defined as the areas that are heated and cooled). You can use one of the following formulae for either purchases or rentals:
Price per sq. ft formula for property purchases
Price per sq. ft formula for rental properties
Calculating the average price per square foot
If you want to get an overview of neighborhood values, one good way to do this is by working out the average price per square foot in that given area. To do this, simply add together the square foot cost of each property in the neighbourhood and then divide it by the number of properties. Let’s say, for example, that there are 4 properties sold on Pages Avenue, all of a similar size with one in less-good condition:
- Property 1 sold at $250 per ft²
- Property 2 sold at $230 per ft²
- Property 3 sold at $220 per ft²
- Property 4 sold at $180 per ft²
Our average price per square foot for Pages Avenue stands at (250+230+220+180) ÷ 4 = $220.
How big is a square foot?
A square foot is defined as 12 inches × 12 inches = 144 inches² . To calculate the square footage of your house or flat, you can use our square footage calculator, which also incorporates a price per square foot option to assist you with calculating square footage price.
If you have any problems using this price per square foot calculator, please contact me.