The Value of a Single-Story Home

I recently heard a fellow agent say that "a single-story home has to be the best investment you can make in real estate today."  

I'm always surprised by how popular a single-story home is. 

I'm not just talking about older buyers who might want to avoid stairs. In general, people prefer one-story homes.

I love a two-story home, but I recognize that mine is less valuable than a single-story equivalent.

We've all noticed that builders aren't choosing the single story very often. Certainly the two story is a better use of land and can fit more housing on a smaller space. Developers will tell you a single-story home is more expensive to build because of the larger foundation.

Newer single-story homes have become rare.

Just because they are more expensive to build doesn't necessarily mean they will be more expensive to buy—but I have often analyzed the price per square foot.  

This year, there have been 99 single-family homes sold in Alamo and Danville. 

Price per square foot for the group is a range of $207 to $557, and the median is $314. Of those 99 homes, 36 are single-story homes with a median price per square foot of $351. The remaining homes (63) are not single story. As a group they have a median price per square foot of $295. Consider also, that of the 36 single-story homes, eight fetched a higher price per square foot than the highest non-single story home ($403). 

The data shows single-story homes are worth more. 

I could do a similar analysis of newer homes. Single-story newer homes are too rare, I would guess, to have enough supporting data. There is value in the age of the home and the fact that it is a single level.

A case in point in Alamo is 334 Corrie Place. This beautiful home has rare attributes: Single story, newer construction, large square footage, flat lot, dramatic views. 

As builders continue to shy away from single-story construction for practical reasons, these homes will become even more rare. The point that the single story home is a great investment will only get stronger as baby boomers age.