Even a global pandemic, ensuing recession, and lately inflation could not bring down the high prices of Silicon Valley homes.
The country’s most expensive zip code is in the Silicon Valley suburb of Atherton, California, according to a recent report from the RealtyHop ad site. The median price of the listing of homes in zip code 94027 was $ 8.95 million. This is an increase of almost 3.5% from $ 8.65 million in 2020.
The report is based on an analysis of every real estate listing in the United States this year through October 20, which totals approximately 2.79 million. Postal codes were then ranked based on their median prices.
âThere is a ton of money in Silicon Valley, an absolutely incredible amount of money,â says real estate agent Compass. Urban Avi, who is based in Palo Alto, Calif., near Atherton. âThe pandemic has been Well for companies in Silicon Valley. It proved that the world is totally dependent on technology.
The Silicon Valley real estate market stagnated at the start of the COVID-19 lockdown, he explains. But as people got used to remote working and Zoom and the stock market recovered, the housing market started to take off. Competition for homes and bidding wars have driven prices even higher.
âAtherton is at the top of the pyramid,â Urban says of the Silicon Valley cities opportunity.
Other cities, including Palo Alto, which had one of the top 10 most expensive zip codes, were also popular with wealthier shoppers. However, “the number of people looking for accommodation at this price is very small,” adds Urban.
The median list price of the 100 most expensive postal codes was $ 2,476,250, up about 7.1% from a year ago.
âPrices are going up because demand is so high and stocks aren’t catching up,â says Shane lee, a data scientist at RealtyHop who worked on the report. COVID-19 also contributed to the rise, as many people moved out of their urban apartments and bought vacation properties or larger mansions in the suburbs.
âThe people who left town are not leaving forever. But they wanted a big garden and a bigger house [nearby], adds Lee.
Seven of the 10 most expensive postal codes were in sunny California. All of these places had median list prices above $ 4 million. To put these prices in perspective, it’s more than 10 times the median home price of $ 380,000 in September, according to the most recent data from Realtor.comÂ®.
After Atherton, the second most expensive zip code was 33109 in Fisher Island, off Miami Beach, Florida, with a median price of $ 6.4 million, according to RealtyHop. Famous seasonal residents have included the likes of Oprah Winfrey, Mel brooks, and AndrÃ© Agassi.
It was followed by 11962 in Sagaponack, NY, which is in the Hamptons (aka the seaside playground of the ultrarich); the famous 90210 in Los Angeles; 11976 in Water Mill, NY, also in the Hamptons; 93108 in Oceanside Montecito, California; 90077 in Los Angeles; 94957 in Ross, California, just north of San Francisco; 92662 in Newport Beach, on the southern California coast; and 94301 in Palo Alto in Silicon Valley, California.
The 100 most expensive zip codes are found in just 11 states, nearly two-thirds of which are in sunny California. Twenty were in New York, five in New Jersey, three in Connecticut, and two in Florida and Washington state. South Carolina, Arizona, Massachusetts, and Nevada each had one of the most expensive zip codes in the country.