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.
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.
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
Charlie Young, president and chief executive officer of Coldwell Banker Real Estate LLC, said 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."
Mr Young said Saratoga has long been known for attracting Bay Area business executives.
"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.”