How to Calculate Price per Square Foot

Understanding price per square foot is a helpful tool for evaluating your home’s value. Whether you’re preparing to sell, considering updates, or simply curious how your property compares in the neighborhood, this metric can give you a clearer sense of where you stand.

Let’s walk through everything you need to know about calculating and using price per square foot to make informed decisions about your property.

What is square footage?

Square footage measures the total floor area of a home or building, expressed in square feet. It represents the livable space within your property’s interior walls, including all rooms, hallways, closets, and other enclosed areas.

For residential properties, square footage typically includes:

• Bedrooms and bathrooms
• Living rooms, dining rooms, and kitchens
• Hallways and entryways
• Closets and pantries
• Finished basements (in some markets)
  

It generally excludes outdoor spaces like patios, decks, garages, and unfinished basements or attics, though practices can vary by region and appraiser. 

How to calculate price per square foot

Determining the exact square footage of your home helps you set an accurate value for the market. Calculating price per square foot is straightforward once you have the right information. Here's the step-by-step process:

Step 1: Determine your home’s total square footage

Start by finding your home’s square footage. You can check:

• Property tax records
• Real estate listing documents
• Home appraisal reports
• Architectural plans or blueprints

If these aren’t available, you can measure the interior space yourself or hire a professional appraiser.

Important: Only include livable, finished areas in your square footage. Spaces you should not count include:

• Unfinished basements or attics
• Porches, patios, or sunrooms
• Unfinished storage areas
• Detached spaces like sheds or guest houses (measured separately if valued)

Step 2: Find the total sale price or market value

To calculate home equity, you’ll first need to know what your home is worth today. This can be expressed in two ways:

• Sale price – The actual amount a buyer paid (or has agreed to pay) for your home. If you recently sold your home or are under contract, this figure reflects its current value in the market.
• Market value – An estimate of what your home could reasonably sell for under current market conditions. This can come from a professional appraisal or online tools like Zillow’s Home Value Estimator.

Use whichever is most relevant to your situation:

• Your home’s current market value (from a recent appraisal)
• The actual sale price (if recently sold)
• An estimated market value from trusted online tools

Step 3: Apply the formula

To calculate price per square foot, divide your home’s value or price by the total square footage.

Price per square foot = Total price ÷ Total square footage

This simple calculation gives you a baseline number to compare against other properties in your area.

Average price per square foot for a house

While prices vary significantly by region, here are general ranges to provide context:

National averages (as of 2025):

• All homes: $210 per square foot
• Condos: $287 per square foot
• Single-family homes: $205 per square foot

Regional variations (as of 2025):

• San Francisco all homes: $704 per square foot
• Los Angeles all homes: $618 per square foot
• New York all homes: $422 per square foot
• Phoenix all homes: $254 per square foot
• Minneapolis all homes: $216 per square foot
• Detroit all homes: $178 per square foot
• New Orleans all homes: $152 per square foot
• Memphis all homes: $139 per square foot

Remember, these are broad generalizations. Your local market conditions will provide the most relevant comparison points for your property.

Why price per square foot is useful

For home sellers, price per square foot is more than just a number — it’s a practical tool for making confident decisions about pricing, positioning, and improving your property.

• Supports pricing strategy: Use price per square foot to set a realistic and competitive listing price based on comparable homes in your area.
• Enables accurate comparisons: Compare your home’s value against similar properties nearby, even when square footage differs.
• Simplifies market analysis: Quickly gauge whether your home is priced in line with current market expectations.
• Guides renovation decisions: Understand which upgrades may increase your per-square-foot value the most, helping you prioritize projects before listing.
• Tracks market trends: Monitor shifts in your neighborhood’s pricing over time to decide the best moment to sell. Zillow offers a current housing market overview for areas across the country.

What affects price per square foot

Several key factors influence your property's price per square foot:

Location

• Urban vs. suburban vs. rural: Homes in dense urban centers typically command a higher price per square foot than those in suburban or rural areas.
• School district quality: Highly rated districts often drive up demand (and price per square foot).
• Proximity to jobs and transit: Easy access to employment hubs, public transit, or major highways can increase value.
• Nearby amenities: Restaurants, shopping, parks, beaches, and cultural attractions all play a role.

Property characteristics

• Age and condition: Newer or well-maintained homes tend to sell for more per square foot.
• Architectural style and features: Unique layouts, vaulted ceilings, or premium finishes can raise the price.
• Lot size and landscaping: While lot size itself isn’t included in the square footage, a desirable outdoor space can affect the overall price.
• Renovations and upgrades: Modern kitchens, bathrooms, or energy-efficient improvements typically increase value.
• Unique features: Special amenities like pools, fireplaces, or custom built-ins may add significant value but don't always translate directly into higher per-square-foot prices.

Market dynamics

• Supply and demand: A seller’s market with limited inventory pushes prices higher.
• Economic conditions: Local job growth, wages, and broader economic health impact buyer demand.
• Interest rates: Lower rates can boost affordability and increase competition.
• Seasonality: Real estate activity often peaks in spring and summer, which can influence pricing.

Understanding price per square foot gives you a clear, practical way to evaluate your home’s value. Whether you’re preparing to sell, considering renovations, or simply tracking your property’s place in the market, this metric offers insight into how your investment is performing.

That said, price per square foot is only one part of the valuation puzzle. To see the full picture, start by finding out how much your house is worth. Then, pair that with guidance from a local expert. A Zillow partner agent can help you price your house accurately and interpret these numbers in the context of your unique property and goals.