Averaging Apples & Oranges
Here’s some no-brainer real estate advice: if you can find a 1,113 square foot Manhattan condo for $200k . . . grab it!
Ditto for a 713 square foot condo in San Francisco for $200k.
Of course, in real life, those properties would likely fetch 6x – 8X(!) that amount.
Lies, Damn Lies, & Statistics
Which is the fatal flaw in the Periodic Table-like chart above (created by an entity called HowMuch.net), that purports to show average real estate costs in all 50 states — specifically, how much home $200k buys.
Namely, real estate prices vary by city and even neighborhood, not state.
In other words, if you take all the 2,500 FSF single family homes in Binghamton, Schenectady, etc. that cost $130k, and average them with Manhattan one bedrooms with 800 square feet (maybe) that go for $1.5M . . . you get an average of 1,113 square feet for $200k.
And a totally meaningless statistic . . .
P.S.: I also very much doubt that average North Dakota housing prices are higher than Minnesota’s — at least once you back out inflated prices in western North Dakota, where shale oil drilling is driving demand.
See also, “Barron’s: “Home Prices Headed Up 7%.'”
