USA Home Price per Square Foot: Color Red versus Color Blue
Zeppelin Real Estate Analysis Limited
Donˇ¦t get me wrong,
this piece is not about conservatives versus liberals, or republicans versus
democrats for that matter*, in the USA. It is about a webpage from
www.zillow.com, one service of which is apparently to offer rough
estimates on some 67,000,000 homes online (and for free) in the USA.
Interested readers can log onto their website for a trial or even to have
your humble author wishes to share with you readers is not the above
service, but the following webpage, as mentioned, which shows the home
price per square foot ˇ§heat mapsˇ¨ of some major cities in the USA:
These heat maps are easier to review and comprehend,
and districts and neighborhoods are differentiated according to their
average home price per square foot ($/ft2) and assigned different color
codes based on the averages. The highest / hottest almost pure red color
denotes a $/ft2 above $1,000 while the lowest / coolest pale blue-purple
color denotes a $/ft2 of less than $50. Naturally, most places fall in
between and a quick glance seems to indicate most $/ft2 are more than $150
(blue color) yet not exceeding $650 (yellowish-orange color).
As the geographical scales in these heat maps appear to be similar
(not the same though with some maps taken from a high altitude than others),
they could provide a quick reference on which cities have pricier clusters
of homes and which comparatively do not, and thus which cities may have more
wealthy people and which do not. Using this simple technique, your humble
author has categorized the observed cities as follows:
= Silicon Valley and it stands out shining brightest i.e. in terms of
having mostly bright color tones starting from yellow ($400/ft2) via orange
($600/ft2) to red ($1,000 or more/ft2). There are simply few green spots
(lower than $400/ft2) and no blue ones ($250/ft2 or less) of which to speak.
Francisco, Los Angeles, San Diego, Miami, and New York City. They show
significant patches of red-orange neighborhoods yet not to the extent of
Silicon Valley and there are more noticeable green-blue zones.
YELLOW / GREEN
= Boston and Seattle. They may harbor significant red-orange districts yet
the blue color zones exist in abundant patches too.
GREEN / BLUE
= Washington DC, Phoenix, and Chicago. Not that they do not have pricey
neighborhoods yet the green-blue zones appear very significant.
BLUE / PALE
= Cleveland, Houston, Dallas, and Portland. Compared to other cities, these
cities offer lower priced homes and there are little or no noticeable
viewing the heat maps: a) these COLOR CODES do NOT represent market
activities i.e. whether they are hot with many transactions and rising
prices or cool with few transactions and falling prices. They just represent
the $/ft2 home prices; b) while admittedly homes in the red-orange cities
would on average cost more than homes in the green-blue-pale cities, this in
itself does NOT mean there are NO luxury homes in the green-blue-pale
cities, just that luxury homes there may be acquired at the cost of a
standard home (or maybe even less) in the red-orange cities.
A pure speculation
on your humble authorˇ¦s part = as there seem to be quite a lot of
households, especially ones in the red-orange-yellow cities and in
particular the aging baby-boomers, whose homes seem to account for a
significant portion of their overall wealth and asset, there (have been /
are) will be some migration moves from the red-orange-yellow zones to the
green-blue-pale zones, whether within a city or between cities. This
trend may become more obvious in years to come as the retiring
community goes from a price-appreciation mindset to a dividend-regular
some folks in the red-orange-yellow zones will simply have to sell and
forego their homes like it or not, in order to retire comfortably in the
green-blue-pale zones, thus causing downward price pressures in some
red-orange-yellow zones and upward pressures (rectified in part by increased
supply) in some green-blue-pale zones.
does somehow seem that the more liberal cities tend to have more red-orange
color zones based simply on visual observations.
The article and/or content contained herein are for general reference only
and are not meant to substitute for proper professional advice and/or due
diligence. The author(s) and Zeppelin, including its staff, associates,
consultants, executives and the like do not accept any responsibility or
liability for losses, damages, claims and the like arising out of the use or
reference to the content contained herein.
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