Affordability remains a top concern for many prospective home buyers, and prices remain prohibitive in most major cities in the U.S. However, for buyers willing to extend their search radius within a 30-mile drive of major cities or with the ability to work remotely, the suburbs remain an affordable alternative for homeowners.
A recent study conducted by Point2Homes indicates that 603 of the 777 suburbs within a 30-mile driving distance of the 20 largest, highest-priced U.S. cities are affordable options for prospective home buyers.
The most expensive cities are concentrated on the East and West coasts, but Point2Homes found prospective homeowners on the East Coast have more affordable suburban options near major metros. Over 90% of the suburbs surrounding New York City, Washington, D.C., and Boston are more affordable than living in the city, according to Point2Homes.
Ninety-five of the top 100 suburbs with the most significant price-per-square-foot differential compared with the nearest city are located on the East Coast. For example, the price per square foot of living space in Medley, Florida, is 65% lower than in nearby Miami.
According to Point2Homes, there are 11 suburbs where the price per square foot of living space is between 60% and 65% lower than the median price in their respective cities. An additional 57 suburbs have median prices 50% to 59% lower than in their nearby cities.
Conversely, California's Oakland, Sacramento, San Francisco, and San as well as Charleston, South Carolina, have the fewest share of affordable surrounding suburbs.
To conduct the analysis, Point2Homes analyzed the 20 most populous and expensive cities in the country and mapped suburbs within a 20-mile circle radius or a 30-mile driving distance. To discover and rank the most affordable suburbs, Point2Homes compared the price per square foot in the surrounding suburbs with the price per square foot in the cities.
