Jim the Realtor’s domain is north San Diego, but his observation rings true to me. He observed that around La Jolla one-story houses sell at a premium of 14% over two-story. The gap has been widening over the years:
The other day, an appraiser mentioned to me that he had just completed a study comparing the prices of one-story houses vs. two-story.
He had done a similar study ten years ago, and found that the premium being paid for a one-story then was about 5%.
Today, he found that the premium is about 14% – more than double!
My SJ house is one-story, and it’s awesome! How much is the premium in the Bay? In SF you need double the size of a typical lot, which is around 2000 ft, to have a shot at single story.
That’s interesting. I don’t know what’s the population of the one story vs two story in that area, but in Bay Area, maybe mainly in South bay / East bay, there are a lot of one story house to command that much premium. But I do agree that one story houses (especially 2000 sqft and above) just look great and practical with aging population or even with staying/visiting parents (which is quite common for Bay Area immigrant population).
One more point that could skew the data is most of the two story houses are newer and generally smaller lot, and on the other hand, one story houses generally have larger lot size.
Most latest new-builds I’ve seen now have a master-suite at the ground floor. Some even design them to have more privacy from the main house, precisely for the multi-generational buyers.
Personally if I were to buy a house with concerns about elderly parents, I’d pick a property that is within walking distance to a park or a grocery store so they wouldn’t need to drive somewhere to get some sort of entertainment. Most new builds are in the middle of nowhere.
First, La Jolla is premium location in San Diego, very nice and expensive location. AFAIK, One story is valued high in bay area and the premium varies location to location ranging between 10% to 20%. In Bay Area, 10k square or rectangular lots (not triangular lots) are always on demand.
The issue is none of the single stories or 10k lots can be purchased as investment purpose as we may not get sufficient returns ! These are best for primary homes alone.
Last year, I was bidding Santa Clara home listed at 888k (owner died in the home 2.5 years before natural death), but sold to 1.3M
For same square footage, 1 story is better of course. It consumes more land and it’s rare. I would buy 1 story over 2 story if price is about the same.
Also 2 story home wastes space on stairs so it feels smaller
I have seen this place last 25 years. In the same location, say same street, you will never see same price for 1 story & 2 story of same sqft size home, not even close at 5% level.
In bay area, if 2 story is 1M, it is easy for single story in the range between 1.1M to 1.25M
San Francisco: 2 story better. 1 story homes is a big no no. Hard for you to find them anyways.
Other BA locations: 2 story homes usually offer more sq ft and are pricier than 1 story.
Overall: Given the same sq ft. 1 story better. But 2 story usually offer lots more sq ft and are pricier.
Why is 1 story not good in SF? You have the potential to build up and get better returns.
In SF, many seniors live in multi-story houses. I always wonder how they climb the stairs. Maybe with daily practice, SF seniors are in better mobility capability
I live in Chula Vista, just south of San Diego. I tried to buy a single story home here but it was impossible. If you want a single story you have to buy an older home with all the maintenance problems that come with it, and then it will also be in a bad neighborhood. When I lived in an apartment my neighbor was a 90 year old women who lived on the second floor. She had no problem with the stairs. I think if you do them all the time it keeps you in shape.
I am only 4 miles north of the Mexican border so I can sit on my front porch and see Trump’s “big beautiful wall” going up. Just kidding, like Sarah Palin could see Russia from her front porch. Actually I don’t have a front porch or yard, but I do have a 700 sq.ft. private patio.
I bought a place. We made a couple of trips to the San Diego area before we moved and figured out the neighborhood We wanted to live in, so we were prepared to buy right away. We got here on 7/14, got our offer accepted on the 17th and closed on the 27th, with an all cash offer. The only problem I had was with everything else going on, I forgot my anniversary on the 27th. My wife took it all in stride.
I think 2 story home easier and cheaper to build out downstairs. where one story to build additional story on top will cost more. So the appraisal even smaller lot 2 story worth more than 1 story.
But in future it will be changing when cities are easier on the code to build on big lot. I think it’s just a matter of time.
Most urban lots are 6000sf or smaller…Hard to get more than 1300sf on one level…Most old ranchers and bungalows are only 1300sf or less…plus a garage. …Can get an extra 1700sf with a 2 story…Say 3000sf max…That is what my business was teardown old ranchers and build 2500-3500sf 2 story…And in PA we put in basements also…Turned old tired 1300sf bungalows into 4000sf Mcmansions…That is why 7500sf 50x150 lots and bigger were so much more desirable. .But to get a decent 1 story 2400sf 4/3 you really need premium 10,000sf lots like 80x120 or larger…very rare in the West Bay… $1.5m and up just for the lot
