Why do small homes cost more per square foot than large?

Why do small homes cost more per square foot than large? Ah, The age-old mystery of real estate! There are a couple of key reasons for this interesting phenomenon:

**Demand and Supply**: Smaller homes are often in higher demand because they’re more affordable to a larger portion of the population. The higher demand can drive up the price per square foot.

**Efficiency in Use of Space**: Smaller homes may have more efficient layouts, and premium design features might be more cost-effective to implement on a smaller scale. Buyers might be willing to pay more per square foot for quality finishes in a compact space.

**Land Value**: The land a home sits on can be a significant part of its value. A smaller home with valuable land can have a higher price per square foot simply because the land value is spread over fewer square feet.

**Lower Overall Cost**: Even though the price per square foot is higher, the overall cost of a small home is lower. This makes smaller homes more accessible, pushing up the competition and, consequently, the price per square foot.

Isn’t the real estate market full of fascinating quirks? If you’re thinking of diving into the world of property buying or selling, I’ve got plenty more insights to share, so don’t hesitate to ask! 🏡