What can homebuyers get for $400,000 in America's largest cities?

Many of the cities where $400,000 goes the furthest are in the Midwest. The five cities where you get the most bang for your buck span four Midwestern states: Michigan, Ohio, Kansas, and Indiana.

1. Detroit, Michigan

The median home value in Detroit, Michigan, is only $69,300, which means a $400,000 home budget goes far in Motor City. The median price per square foot for residential properties over the past year is $67, so $400,000 would buy you a nearly 6,000-square-foot home. 

• Average price per square foot: $67
• Estimated size of a $400,000 home: 5,993 square feet

2. Toledo, Ohio

Situated on the western tip of Lake Erie, Toledo ranks second for cities where $400,000 goes the furthest regarding home purchases. In this city of roughly 268,500 people, the median home value is $100,100—less than half the 2021 national average ($281,400). 

Toledo's average price per square foot is similarly low relative to national figures. Recent data shows that the average price per square foot is $90 for single-family homes, meaning that $400,000 would buy you a 4,444-square-foot home.

• Average price per square foot: $90
• Estimated size of a $400,000 home: 4,444 square feet

3. Cleveland, Ohio

While the 2021 median home value in Cleveland, Ohio, is lower than Toledo's ($83,400 versus $100,100), the average price per square foot is slightly higher at $94. The home size difference between Cleveland and Toledo is roughly 200 square feet, so you can still get a 4,272-square-foot home for $400,000 in Cleveland.

• Average price per square foot: $94
• Estimated size of a $400,000 home: 4,274 square feet

4. Wichita, Kansas

Located in south-central Kansas, Wichita is a city of roughly 395,700 people that ranks high for home affordability. The 2021 median home value stood at $165,700, and more recent home sale data places the price per square foot at $113. With that, $400,000 will buy you roughly 3,553 square feet of home, well above the average home size in the U.S., which is roughly 1,600 square feet, according to recent Redfin estimates.

• Average price per square foot: $113
• Estimated size of a $400,000 home: 3,553 square feet

5. Fort Wayne, Indiana

Fort Wayne, Indiana, is the smallest of the five cities where $400,000 goes furthest. According to Census Bureau estimates, the population stands at 263,800. Fort Wayne is also in the top 10 cities with the highest percentage of single-family homes at 69%. For homes sold from April 2022 through March 2023, the average price per square foot was $115, meaning that $400,000 will get you an approximately 3,483-square-foot home.

• Average price per square foot: $115
• Estimated size of a $400,000 home: 3,483 square feet

The top five cities where $400,000 stretches the least are all in California. With an average price per square foot of $665 or higher, you could afford at most a 600-square-foot home with a $400,000 budget in any of the following cities.

1. San Francisco, California

A $400,000 home in San Francisco, California, would be quite small and likely difficult to find. The average price per square foot in the Golden City is $996 for all homes and $1,019 for single-family homes.

Since single-family homes make up less than 1 in 5 homes (19%) in San Francisco, we calculated the estimated size of a $400,000 home based on the city's overall price per square foot. We found that $400,000 would buy you only 402 square feet of home.

• Average price per square foot: $996
• Estimated size of a $400,000 home: 402 square feet

2. Fremont, California

The median home value in Fremont, California, is roughly $1.2 million, according to 2021 Census Bureau data. More recent estimates from Redfin show a similar price.

Over the past year, the average price per square foot for single-family residential homes in Fremont was $952. This means your housing budget doesn't go as far in this city. The estimated size of a $400,000 home is 420 square feet—barely larger than in San Francisco.

• Average price per square foot: $952
• Estimated size of a $400,000 home: 420 square feet

3. San Jose, California

San Jose, just an hour outside San Francisco, is the third Californian city where $400,000 buys you less than 500 square feet of home. More than half of the homes there are single-family, with the average price per square foot at $884. Considering this, a $400,000 home would be only 452 square feet. 

• Average price per square foot: $884
• Estimated size of a $400,000 home: 452 square feet 

4. Irvine, California

In Orange County, Irvine ranks as the fourth city where $400,000 buys the least. Many of the city's 309,000 residents own expensive homes, with a median home value of $970,500. With that, the average price per square foot is $721, more than three times the national average. Therefore, a $400,000 home would only be roughly 555 square feet. 

• Average price per square foot: $721
• Estimated size of a $400,000 home: 555 square feet 

5. Los Angeles, California

Perhaps surprisingly, Los Angeles slightly outperforms Irvine regarding home affordability. Both cities have 37% single-family homes. However, the average price per square foot for single-family homes in Los Angeles is slightly lower, at $665 (compared to $721).

A prospective homeowner with $400,000 could afford roughly 601 square feet of home in Los Angeles. But that may be hard to find. The median home value in the area was $812,800 in 2021, more than double the $400,000 figure we considered. 

• Average price per square foot: $665
• Estimated size of a $400,000 home: 601 square feet

How to make the most of your home funds

In this study, we looked at average price-per-square-feet figures across different cities. However, prospective homebuyers may be able to get more for their money if they buy an older home or a fixer-upper.

Older homes tend to have a lower purchase price than their newer counterparts. According to Rocket Mortgage, the price of a newly built home is often much higher than an older one—typically by 30% or more. 

This price difference has real square footage implications for how far $400,000 goes. The difference between a newly built home for $400,000 and an older home, assuming a 30% difference in price, is $60 per square foot, or 462 additional square feet for an existing home (more than you might get regardless in a city like San Francisco). 

Fixer-uppers—no matter how old they are—may also sell for a lower price, but they require time and money after the sale. For individuals looking to save, DIY is an option. If you choose to buy a fixer-upper and complete the home improvement projects yourself (rather than hiring a professional), the savings may be significant.

No matter what type of home you buy, though, get a home inspection. This entails having a qualified home inspector complete a thorough investigation of any repairs needed. In doing so, the prospective buyer can have a true sense of the total cost of the home, including both up-front and additional costs.

Other major expenses when you move include hiring movers. If you have a small home with a local move, a DIY move will likely save you thousands of dollars. If you have a long-distance move or a large home, compare several quotes to choose the cheapest professional mover. And don't forget to ask your mover about short-term storage options if you are purchasing a fixer-upper and need extra space while you complete your first projects.

Methodology

The This Old House Reviews Team sought to find how big of a home you could purchase with $400,000 in the 100 largest U.S. cities. We considered the average price per square foot for homes sold from April 2022 through March 2023 using data from Redfin.

Single-family homes account for about 77% of homes in the U.S. But they are more prevalent in certain cities and often have a significantly lower share of homes in large cities. To account for differences, we considered the average price per square foot for single-family residential homes in cities where at least 30% of homes are single-family. In the 12 cities with less than 30% of single-family homes, we used the average price per square foot across all home sales.

All other data cited on median home values and the share of single-family homes comes from the Census Bureau's 2021 1-year American Community Survey. 

This story was produced by This Old House Reviews Team and reviewed and distributed by Stacker Media.