PHOENIX — Just looking at the surface of things, it may seem obvious that the goal for any family would be to buy as much space as possible. The more space there is, the more room there is for the children to run around, and it is more likely you are making doing well financially as you can afford such a house.
But a recent study by Opendoor.com, a real estate startup that helps homeowners sell their home online, found that people are actually trending towards downsizing their residence instead of upsizing it.
“Condos appear to be highly desirable because of lifestyle changes,” Arizona State University Real Estate Professor Mark Stapp said.
The study found that as the market came back in 2012, single family houses in the Phoenix area were sold at an average of $103.69 per square foot, compared to condos that were sold at $100.58 per square foot.
In January of 2016, the average sale price of a condo was around $175,000 in the Phoenix area, while the average price of a single family home in the same month was about $260,000. The average difference in the sale price between the two is $80,670.
“Overall, single family homes see 12 percent more negative value swings than condos,” Opendoor.com said.
But Stapp said the recent trend doesn’t mean all families are downsizing and selling their houses to move into condos. In fact, Stapp said houses are crucial for a community.
“Single family detached housing isn’t dead by any stretch of the imagination, and we can’t continue to grow as a place without it,” Stapp said.