The Bay Area's real estate market has seen a significant shift, with 33 cities now boasting typical home values exceeding $2 million. This exclusive list includes both well-known enclaves and former farm towns transformed into affluent communities. New Entrants to the Two-Million-Dollar Club
Danville is a notable newcomer. This town of 43,000 near Mount Diablo has seen its median home price nearly double from $1.2 million in 2016 to $2 million. Residents like Jennifer Youngblood have witnessed dramatic changes. Her parents bought their home in Danville in 1970 for $37,500, and the town has since evolved with modern schools, upscale mansions, and a scenic 30-mile trail replacing old train tracks.
Pandemic Effects on Real Estate
Real estate agent Kevin Cox noted that the pandemic spurred demand for homes in communities like Danville, where larger lots and a suburban lifestyle became more appealing. Danville's home values surged by 7% in a year, one of the highest growth rates among the two-million-dollar cities. Despite its growth, Danville retains a small-town charm, making it an ideal place to raise a family.
Limited Development Fuels Value
A significant factor driving up home values is the limited availability of new construction. Many towns in the two-million-dollar club maintain their status by restricting new developments. Woodside, with typical home values at $3.8 million, declared itself a mountain lion habitat to avoid new state housing laws. Lafayette residents fought a developer for 12 years over a 315-unit project, while Atherton's elite, including tech executives and celebrities like Steph Curry, opposed plans to add new housing units.
Bay Area Real Estate Trends
The trend shows no signs of slowing. In May 2024, the median price for single-family homes across the nine-county Bay Area was $1.46 million, marking the fourth consecutive month of price increases. Santa Clara County's median home price exceeded $2 million for the first time in April 2024, indicating that more cities could soon join the two-million-dollar club.
Are you looking to navigate the Bay Area's dynamic real estate market? Whether you're buying, selling, or investing, Benson Group is here to help you make informed decisions. ----------
Source: eastbaytimes.com
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