I have often said that buying a house is like buying popcorn at the movie theatre - The Bigger the Box the less you pay on a unit cost basis. I find that about 50 cents tends to get me twice the popcorn with free refills.
Most people that do any kind of grocier shopping or other purchasing understand Unit Cost and that the more you buy the Unit Cost tends to go down.
The basic Unit Cost of home buying is Cost Per SF. It has always been clear to me that all else being equal the price of homes goes down on a SF basis as the size goes up. Here is a chart looking at the Home Sales in Brentwood California in 2010. I have excluded all the homes with about an acre of land or more as much of those values came from the land sale, not the house itself.
Take a Look at the Chart:
Prices clearly Droped as the Size of the home got Bigger.
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