{"id":66184,"date":"2019-06-25T07:16:16","date_gmt":"2019-06-25T14:16:16","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/?p=66016"},"modified":"2020-10-06T12:58:35","modified_gmt":"2020-10-06T19:58:35","slug":"most-expensive-home-sale-ever","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/most-expensive-home-sale-ever\/","title":{"rendered":"Here\u2019s How Many Affordable Homes Could Be Purchased For $238 Million\u2013The Price of Most Expensive U.S. Home Ever Sold"},"content":{"rendered":"<p><em><span style=\"font-weight: 400;\">Hint: it\u2019s every single affordable house on the market in Deltona, Fl, or half of all homes for sale in Akron, OH.<\/span><\/em><\/p>\n<p><span style=\"font-weight: 400;\">For the $238 million spent on<\/span><a href=\"https:\/\/time.com\/5511522\/new-york-penthouse-most-expensive-238-million\/\"><span style=\"font-weight: 400;\"> the most expensive American home ever sold<\/span><\/a><span style=\"font-weight: 400;\">, approximately 1,100 affordable homes could have been purchased.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The record-breaking sale was made by the founder of a global investment firm in January of 2019. The home fills 24,000 square feet&#8211;the average <a href=\"https:\/\/redfin.com\/city\/30749\/NY\/New-York\">New York City<\/a> apartment in contrast, has just <\/span><a href=\"https:\/\/ny.curbed.com\/2016\/9\/21\/12999536\/nyc-apartment-sizes-decrease\"><span style=\"font-weight: 400;\">under 900 square feet<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For the purpose of this analysis, we define the typical affordable American home as being priced at $216,388. We made the determination based on the national median household income of $61,372, as reported by the U.S. Census Bureau in the 2017 American Community Survey. Using this number, we determined that the national median household can spend $1,034 a month on total housing payments. With a 20 percent \u00a0down payment and 1.125 percent property tax rate, $216,388 is the highest home price a typical American can reasonably afford.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Dividing the $238 million spent on that one penthouse by $216,388, yields roughly 1,111 affordable homes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To put that into context, <\/span><span style=\"font-weight: 400;\">that number is nearly equivalent to the total current inventory of affordable homes for sale in <a href=\"https:\/\/redfin.com\/city\/4476\/FL\/Deltona\">Deltona<\/a>, FL, which counts 1,115 homes priced at or below $216,388. That represents just about 30 percent of all homes currently on the market in Deltona.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cMany Democratic presidential candidates want to do something to address housing affordability, but all of the solutions can seem like an exorbitant use of tax-payers\u2019 money,\u201d said Redfin chief economist Daryl Fairweather. \u201cHowever, when you see that the most expensive home purchase costs as much as providing affordable housing to over a thousand families, the Democrats have a good case for some kind of redistribution of wealth to make housing more affordable.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, nearly every affordable home in the following metro areas could have been purchased for the price of the single $238 million <\/span><span style=\"font-weight: 400;\">home sale:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Metro Area<\/b><\/td>\n<td><b>Number of &#8220;affordable&#8221; homes for sale (priced $216,388 or less)<\/b><\/td>\n<td><b>Percentage of homes for sale that are &#8220;affordable&#8221; (priced $216,388 or less)<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\"><a href=\"https:\/\/redfin.com\/city\/12260\/TN\/Memphis\">Memphis, TN<\/a><\/span><\/td>\n<td><span style=\"font-weight: 400;\">1,158<\/span><\/td>\n<td><span style=\"font-weight: 400;\">46.1%<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/redfin.com\/city\/4664\/OH\/Columbus\"><span style=\"font-weight: 400;\">Columbus, OH<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">1,141<\/span><\/td>\n<td><span style=\"font-weight: 400;\">22.9%<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/redfin.com\/city\/9406\/CT\/Hartford\"><span style=\"font-weight: 400;\">Hartford, CT<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">1,136<\/span><\/td>\n<td><span style=\"font-weight: 400;\">26.5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/redfin.com\/city\/12742\/FL\/North-Port\/filter\/status=active\"><span style=\"font-weight: 400;\">North Port, FL<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">1,133<\/span><\/td>\n<td><span style=\"font-weight: 400;\">13.6%<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/redfin.com\/city\/7891\/SC\/Greenville\"><span style=\"font-weight: 400;\">Greenville, SC<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">1,132<\/span><\/td>\n<td><span style=\"font-weight: 400;\">28.3%<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/redfin.com\/city\/4476\/FL\/Deltona\"><span style=\"font-weight: 400;\">Deltona, FL<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">1,115<\/span><\/td>\n<td><span style=\"font-weight: 400;\">28.8%<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/redfin.com\/city\/244\/OH\/Akron\"><span style=\"font-weight: 400;\">Akron, OH<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">1,085<\/span><\/td>\n<td><span style=\"font-weight: 400;\">55.2%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">In <a href=\"https:\/\/redfin.com\/city\/12260\/TN\/Memphis\">Memphis<\/a>, TN, $238 million translates into 46 percent of all homes for sale priced at $216,388 or less. That sum could have purchased nearly half of all Memphis homes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Similarly, in <a href=\"https:\/\/redfin.com\/city\/244\/OH\/Akron\">Akron<\/a>, OH, the value of the penthouse represents more than half of all homes for sale. With 1,085 homes listed meeting the criteria for affordable homes, there would still be a few hundred dollars left over. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">When spent charitably, the $238 million\u2019s impact could double. Bryan Thomas, the Director of Public and Media Relations for Habitat for Humanity International estimates that the cost to build a single home for a family in need to be around $100,000. \u201cThe costs of land and construction vary pretty greatly from community to community in the U.S,\u201d he said. \u201cHowever, it\u2019s fair to ballpark that the average hard costs of construction of a Habitat home in the United States is about $100,000.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As such, $238 million divided by $100,000 would yield approximately 2,380 new construction Habitat for Humanity homes.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\t\t\t\tA New York City penthouse broke records selling for $238M, which is equivalent to purchasing just about every single affordable house on the market in Deltona, Fl, or half of all homes on the market.\t\t<\/p>\n","protected":false},"author":13190,"featured_media":66017,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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