A home’s location has never been more important to its sales’ value, according to a new report from the U.S. Census Bureau. The report found that the price of new homes sold in 2023 varied by as much as $74 per square foot, depending on the area of the country. 

The average median price per square foot for a new home in the South was just over $146, while a home in the Midwest averaged $156.26. The Northeast saw the highest average price at $220.95 per square foot. The West averaged $195.38 per square foot. 

The organization noted that 660,000 single family homes were built in 2023, with an average median price of $428,000. These new homes had an average median size of nearly 2,300 square feet and a median price of $154.70 per square foot. 

The Northeast had the highest average median price for a home priced at $760,700 at a size of 2,430 square feet, followed by the West at $536,200, at 2,170 square feet. The average median price in the Midwest was $396,300 at 2,176 square feet, while the South saw an average home price of $388,800 at a size of 2,335 square feet, according to the Census Bureau. 

Overall home sales have been down this year at an annual rate of 619,000 in sales. According to the Census Bureau, 73 percent of new single-family houses sold were purchased using conventional financing during 2023. The Census Bureau reports that 8 percent of new homes were purchased with cash and 13 percent were financed with FHA-insured loans in 2023.

The average price of a home sold was $417,400, with sales decreases among single-family homes which fell 2.1 percent in March, down 1.3 percent compared with 2023. 

Homeowners are enjoying more luxuries than ever before. Rising temperatures and increased affluence have resulted in an increase in the number of homeowners in the West who have air conditioning; 98 percent of newly constructed homes in the West have air conditioning.