I would think it would depend on the area/state. Places like MT, ND, etc there are alot of outside areas that are great, but close to "cities". Maybe there are more in a city, closer to schools, work etc, but sometimes places out of city, give you more room and privacy. If you can get near lakes etc, it is great.
I guess what I am saying, it depends on a person's life style, income and how much freedom they want.

Define "in the city" and not in the city.

Are you saying within a metro area and outside the metro area? Or literally within the core city (For example, Cleveland where I am), and then the suburbs?

Statistically, property in major cities is worth considerably more than property outside the city. eg a penthouse in NY,NY could sell for 50 times the price as something in Rochester. Of course, they are practically giving away mansions to anyone willing to move into downtown Detroit.

What sells "more"? Not sure what you mean by that. There are more homes outside cities than downtown, so more of them sell.

I think a key factor will be taxes, insurance and cost to get to job and shopping. It might be more "quaint" living out of the city, but a pain to drive to work or shop. That wear and tear on your car(s) adds up quick. Plus, living out of the city how good/bad is the school system compared to the city one? Is the tax base outside the city strong? or going down? The city has tax issues, insurance, schools might not be good etc...put a dollar value on what is important and see how it all adds up. Plus, think about when you have to sell...even if it is years away...you never know and might have to sell in a few years for unplanned reasons.

Maybe the OP means just outside of city limits. In NC, I can throw a rock and be outside the city. The "no-mans land" has the same school district since we are county based but it has septic and well water. Technically it has different fire coverage but our fire dept would still go there. Same with using the sheriff instead of our police force.

The density is less but they get to use our roads so it isn't a commute issue.

Well - in this area - being in the city is easier to sell and commands a higher value. I'm not entirely sure why but it just is. We had the option and bought in the city - paid more for the privilege of a higher tax rate. I do know why - it was mostly the feel of the area. I didn't want to give up part of the yard to septic field and I prefer curbs. I also thought the city's laws made more sense. There were other considerations as well but it doesn't make the most financial sense.

I'm not sure what you are asking. Are we talking price or volume of sales?

There is a larger market for less expensive homes because more people can afford to buy them. These could be small, older homes on smaller, expensive lots within cities, or big, cheap boxes on land the builder bought for pennies 'way outside a city. You could pay more for a small condo than a 6000 sq ft 'box' -- depending on location.

There's more sales volume where there are more people -- people with jobs!

Not enough information. We need to know which city. NY, Boston, Philly, etc. are still very desirable addresses. Most major cities, however, are not -- primarily because of crime and the school systems. That's why the first-tier suburbs of most cities are the most desirable and most expensive places to live.

And when you get to smaller cities and towns, where there are no "suburbs", per se, and just a choice between incorporated and unincorporated, I think it becomes more about which school you like best and whether you want to live "closer in" or "further out".