Tech is hot, and Silicon Valley is hotter. For the third time in five years, the technology capital of the world ranked as the most expensive place to live in the United States in the Coldwell Banker Real Estate Home Listing Report (HLR). According to the report, which is the most extensive home price comparison tool in the U.S., the average four-bedroom, two-bathroom home costs $2,453,718 in this year’s most expensive market, Saratoga, California.
“Saratoga has long been known for attracting Bay Area business executives,” said Nancy Robinson, regional vice president of Coldwell Banker Residential Brokerage San Francisco Bay Area. “The continued success of the technology industry coupled with the ongoing demand for properties, exclusivity, highly-ranked public schools and comparably larger lot sizes of the area have made Saratoga one of the most desirable places to live in Silicon Valley.”
Six of the top 10 most expensive markets are in Silicon Valley, and all 10 are in California.
Top 10 Most Expensive Markets
- Saratoga*, Calif., $2,453,718
- Newport Beach, Calif., $2,130,338
- Cupertino*, Calif., $1,812,833
- Redwood City*, Calif., $1,807,068
- Arcadia, Calif., $1,748,680
- Carmel, Calif., $1,722,500
- San Francisco*, Calif., $1,672,100
- La Cañada Flintridge, Calif., $1,571,846
- Sunnyvale*, Calif., $1,566,616
- Los Gatos*, Calif., $1,470,524
*Indicates Silicon Valley
In contrast, the 2016 HLR found that you don’t have to move to the middle of nowhere to find an affordable home. Many of the most affordable markets are located in -or within an hour’s drive to- metropolitan areas that offer access to jobs, culture, entertainment or top universities.
“Silicon Valley has been at the forefront of innovation in the U.S. for years, with leading tech companies attracting some of the brightest entrepreneurial minds in the world. Clearly, the amenities of the region are also impacting home prices. While there are 25 communities in the U.S. where the average price of a four-bed, two-bath home is more than $1 million, it’s fascinating to find that nearly 40 percent of the cities we studied had like-sized homes for less than $250,000,” said Charlie Young, president and chief executive officer of Coldwell Banker Real Estate LLC.
This year, Detroit, an iconic city which has seen a major revitalization, ranked as the most affordable market in the country where an average four-bedroom, two-bathroom home costs $64,110.
Top 10 Most Affordable Markets
- Detroit*, Mich., $64,110
- Cleveland*, Ohio, $73,073
- Park Forest*, Ill., $78,392
- Jamestown*, N.Y., $88,891
- Utica*, N.Y., $92,891
- Wilkes-Barre*, Pa., $94,436
- Scranton*, Pa., $104,842
- Huntington*, Ind., $105,614
- Augusta*, Ga., $106,567
- Palatka*, Fla., $110,655*
*Indicates a market in or within commuting distance to metropolitan areas
ABOUT THE 2016 COLDWELL BANKER® HOME LISTING REPORT
- The annual report is the most extensive home price comparison tool currently available in the U.S., ranking the average listing price of four-bedroom, two bathroom homes in more than 2,000 markets.
- While other affordability reports provide average or median prices for all homes in a given area, the Coldwell Banker® HLR analyzes more than 50,000 four-bedroom, two-bathroom home listings to better address how much a home in one market would cost if the same home were located somewhere else in the country.
- The national average listing price of a four-bedroom, two-bathroom home is $320,120 which, on average, can buy a sample size home in nearly 1,300 markets across the country.
The Most Affordable and Expensive Markets in Each State
An interactive list of the most affordable and expensive markets in each state can be viewed on the Coldwell Banker® HLR website.
The Coldwell Banker® U.S. Home Listing Report analyzes the average listing price of four-bedroom, two-bathroom real estate properties on coldwellbanker.com between January 2016 and June 2016 for 51,163 listings in 2,168 markets. The Coldwell Banker franchised affiliates, as well as other franchise brands associated with Realogy Holdings Corp, contribute to listings on coldwellbanker.com. Markets without at least 10 four-bedroom, two-bathroom listings on coldwellbanker.com between January 2016 and June 2016 were excluded from the ranking.