Where $1 Million Buys the Most (and Least) Space – What It Means for Property Investors
In today’s shifting luxury real estate market, where you invest your million-dollar budget matters more than ever. According to the latest Realtor.com Housing Market Luxury Report, the national luxury benchmark price dropped to approximately $1.24 million in September 2025.
For homes priced between $1 million and $2 million, the average size sits around 2,994 square feet—but the spread across metropolitan areas is enormous.
Inland Value vs. Coastal Premium
In many inland metro markets, $1 million buys significantly more space:
Atlanta, Georgia: ~4,530 sq ft at ~$301/sq ft.
Denver, Colorado: ~4,272 sq ft at ~$326/sq ft.
Conversely, in high-barrier coastal metros, you often get less than half that space:
Honolulu, Hawaii: ~1,651 sq ft at ~$827/sq ft.
San Jose, California: ~1,688 sq ft at ~$872/sq ft.
Los Angeles, California: ~1,987 sq ft at ~$711/sq ft.
The top five metros where $1 million stretches the furthest were:
Atlanta, GA: 4,530 sq. ft. | $301/sq. ft.
Denver, CO: 4,272 sq. ft. | $326/sq. ft.
Minneapolis, MN: 4,162 sq. ft. | $337/sq. ft.
Houston, TX: 4,112 sq. ft. | $348/sq. ft.
Dallas, TX: 4,072 sq. ft. | $340/sq. ft.
The metros where $1 million buys the least square footage were:
Honolulu, HI: 1,651 sq. ft. | $827/sq. ft.
San Jose, CA: 1,688 sq. ft. | $872/sq. ft.
San Francisco, CA: 1,855 sq. ft. | $771/sq. ft.
Los Angeles, CA: 1,987 sq. ft. | $711/sq. ft.
New York, NY: 2,048 sq. ft. | $694/sq. ft.
What This Means for Investors & Landlords
For property investors and independent landlords, this divergence highlights key strategic opportunities:
Maximize rental yield: In inland markets where your $1 million buys you much more square footage and often land, you can build greater rental-income potential or scalable projects.
Prestige vs. space trade-off: In coastal markets you’re buying premium location, view, and scarcity more than square footage. That means higher entry cost and tighter margins for rental or value-add plays.
Consulting opportunity: For firms like Fertig & Gordon, advising clients on selecting markets isn’t just about price—it’s about quantifying “space-per-dollar”, land availability, growth prospects and exit strategies.
Value redefinition: The luxury buyer is shifting focus from sticker price alone to true value — what you get for your money in terms of space, amenities & land.
Tactical Tips for Your Real-Estate Strategy
Run a square-footage per million-dollar budget analysis for your target metro.
Compare cost per square foot and understand the premium for location versus buildable area.
Factor in land, zoning, future growth especially in inland metros where expansion is viable.
Align your client type: Are you advising someone seeking large rental units, or prestige coastal asset for long-term hold?
Ensure your exit strategy accounts for possible market correction — the report calls the current state a “healthy rebalancing”.
Why Fertig & Gordon Adds Value
At Fertig & Gordon, we blend consulting and property-management expertise to help investors, landlords and property firms:
Identify high-opportunity metros where their budget goes farthest.
Analyze square-footage metrics, cost/sq ft dynamics and land-availability context.
Create tailored management and exit plans (whether for single assets or portfolios).
Stay ahead of luxury-segment shifts, ensuring clients aren’t overpaying for location only without return.
Closing Thought
If you’re deploying seven-figures into real estate, don’t just ask “where is the price $1 million”, ask “how much space and land am I getting?” Fertig & Gordon is positioned to guide your decision-making with data, strategy and execution.