The old adage about location, location, location is true when people are looking for a coveted, even exclusive, spot to call home.
According to a new report from Realtor.com, that a perfect location in elite enclaves from coast to coast carries more weight than a sprawling floor plan.
To identify housing markets where home sizes and prices sharply diverge, Realtor.com said its researchers ranked communities by their price per square foot. Their analysis focused on ZIP codes with a minimum of 25 active listings in February to ensure a statistically significant sample.
Realtor.com said that the price per square foot serves as the ultimate location desirability gauge because it shows the underlying value of land. A high number indicates increased demand, scarcity of land, or proximity to coveted lifestyle amenities, such as beaches or bustling downtowns, Realtor.com noted. Conversely, a low PPSF suggests that land is plentiful or that the location is less in demand.
For that reason, Realtor.com noted that an 800-square-foot condo in Manhattan might have a PPSF of $1,700, while a spacious 8,500-square-foot, single-family home in Cleveland might see $210.
According to Realtor.com’s housing data study, five premier communities lead the nation with the highest median prices per square foot.
Top PPSF is Over $3,100
The elite enclaves include the super exclusive Fisher Island in Miami Beach, Florida; Colorado’s luxury ski hubs of Aspen and Snowmass Village; the coastal Balboa Peninsula in Newport Beach, California; and Manhattan’s trendy West Village.
Realtor.com said that in those ZIP codes, the median list prices per square foot are a staggering 10 to 14 times higher than the national median of $223.
“What’s driving the price per square foot in a lot of these ZIPs is desirability of location, scarcity of space to build large homes, and a high share of condos on the market,” Realtor.com Senior Economist Joel Berner said. “These are places where lots of people want to live, but there isn’t much space to build more homes, and so high-priced luxury condos make up a large share of the market.”
Additionally, Realtor.com noted that many of the top-ranked communities, such as Aspen and Newport Beach, are luxury vacation destinations where even small homes can command massive premiums. Let’s take a look at how Realtor.com describes the top five:
- Fisher Island, Florida
ZIP code: 33019
Metro: Miami, FL
Median list price per square foot (PPSF): $3,174.20
A 216-acre enclave located off the southern tip of Miami Beach, Fisher Island is known for its high level of exclusivity, combining privacy and security with proximity to the region’s most bustling metropolis.
“Price per square foot on Fisher Island is a reflection of extreme scarcity,” Ana Bozovic, a Miami-based real estate agent and founder of real estate research firm Analytics Miami, told Realtor.com. “The island is largely built out, inventory is limited, and the buyer pool is global. When supply is permanently capped and demand keeps expanding, prices naturally move into a different category.”
Bozovic points out that buyers shopping for properties on Fisher Island are pursuing exclusivity and not simply square footage.
“In that sense, the real product is the island itself,” says the agent. “The cost of entry reflects access to a highly controlled environment that is difficult to replicate anywhere in the United States.”
- Snowmass Village, Colorado
ZIP code: 81615
Median list PPSF: $2,780.06
Located just 9 miles from Aspen, Snowmass Village is globally renowned as a top year-round mountain destination. The affluent community of roughly 3,000 residents is anchored by a sprawling, family-friendly ski resort with over 3,300 acres of terrain for downhill and cross-country skiing, snow tubing, and ice skating in the winter. The Snowmass area also features miles of trails with breathtaking alpine views, making it a top mountain-biking and hiking hot spot in the summer.
- Aspen, Colorado
ZIP code: 81611
Median list PPSF: $2,653.52
As one of the nation’s most famous ski destinations that is home to four separate mountains offering a range of terrains for all skill levels, Aspen stands out as a premier winter getaway for celebrities and C-suite executives alike. Besides the numerous opportunities for outdoor recreation, from skiing to fly fishing and whitewater rafting, Aspen serves up world-class shopping and dining options, as well as a vibrant cultural scene.
- Balboa Peninsula, California
ZIP code: 92661
Metro: Newport Beach
Median list PPSF: $2,475.04
Named after Spanish explorer Vasco Núñez de Balboa, the Balboa Peninsula is a high-end residential neighborhood in Newport Beach nestled along a 3-mile scenic stretch located between the harbor on one side and broad, sandy beaches on the other. The area draws a steady stream of surfers, boaters, and fishing enthusiasts year-round.
- West Village, NY
ZIP code: 10014
Metro: New York City
Median list PPSF: $2,284.76
Known for its charming European atmosphere, the West Village in Manhattan has won legions of fans with its leafy, cobblestoned streets, cozy cafes, and elegant 19th-century brownstones. A long roster of A-listers call the bohemian West Village “home,” among them Bravo star Andy Cohen and “Sex and the City” actress Sarah Jessica Parker. Besides being a coveted residential area dotted with stylish boutiques and antiques shops, the Manhattan enclave features several major landmarks, including the Whitney Museum of American Art and Stonewall Inn.
“The supply of homes is short, and the demand is high, and it’s been this way for many decades,” Donna Olshan, president and real estate agent at Olshan Realty, told Realtor.com.
One of the largest property owners in the area is NYU, which has bought buildings and land as part of its development strategy, making the Village’s housing market highly competitive.
