If you are a routine grocery shopper, then you already know that comparing ‘per-unit’ pricing is a smart way to shop. If something costs .48 cents per ounce then you can easily compare different brands and sizes and quickly determine that .51 cents per ounce is likely more than you need to spend. It is logical then that the same process would apply to home prices.
Continuing with the grocery analogy, the concept works well when comparing apples to apples. Price per square foot is a good barometer to consider when looking at houses and condos that are almost identical or at least very similar to each other. This works well on a new construction cul de sac in the suburbs and in high rise buildings in the city. The challenge in SF however is that the housing inventory is very old and uniquely diverse. This means that one home is usually very different than the one next door, including the details of the interior, the exterior, the parking, the view, you get the picture.
The other challenge with price per square foot in the city is that we are often relying on inaccurate square footage figures from tax records. This means that the fundamentals are not accurate, so any comparison based on square footage would be incorrect. So while price per sq foot might seem perfectly logical, it may not really be as solid a data point as you think. Each situation is different, so let me know what you are looking for and we will take a closer look.
(Updated: June 8, 2021)