While most Americans are scrimping and saving as the economy continues shuddering, home buyers in some neighborhoods aren’t quite as concerned with saving money.
Home sale prices rose in more than three-quarters of the nation’s most expensive real estate markets this year as buyers bid up the sticker prices, according to a recent report from real estate data firm PropertyShark.
The pandemic likely helped to boost prices as more well-heeled buyers sought out larger homes on more land in scenic destinations where they could work remotely and have some elbow room for their families.
“Luxury buyers are more resilient to economic conditions like the ones we’re having now,” says Eliza Theiss, a senior writer at PropertyShark. “High-end professionals are still going to be able to buy.”
To come up with its list of the most expensive ZIP codes, PropertyShark analyzed sale prices of single- and two-family homes, co-ops, and condos from Jan. 1 through Oct. 15. Only ZIP codes with at least three home sales were included.
Silicon Valley’s Atherton, CA, retained its spot as the nation’s most expensive ZIP code for the fourth year in a row. The median list price in the suburban town’s 94027 ZIP was a whopping $7,395,050 in October, according to realtor.com® data.
While still stunningly high, the median list price in the tech town is actually down 8.7% from a year ago, according to realtor.com. That’s likely because COVID-19 has allowed many white-collar and tech professionals to work from home, some for the first time. So many of these folks are telecommuting from more affordable or remote areas now that they can work from just about anywhere in the world with a good internet connection.
The vast majority of the most expensive ZIP codes were in California, which claimed 87 of the top 100 places. (Fifty of these were in the San Francisco Bay Area.) Prices in the Golden State have risen over the past year due to the severe lack of inventory and the exodus of workers out of the cities and into the suburbs and countryside. The devastating wildfires have also destroyed some of the state’s housing stock, leading to an increase in demand in areas that were spared the wrath of the disasters.
“California has a housing shortage, and it’s an attractive location,” says Theiss. She touted the strong economy in the state, which is also desirable for its natural beauty.
New York had the second most expensive real estate markets. Overall, only 11 states had ZIP codes that cracked the top 100.
Sagaponack, NY’s waterfront 11962, was the next most expensive ZIP code, with a median home list price of $6,245,050. The Long Island beach town is located in the Hamptons, a popular summer and weekend getaway for New York City’s A-listers and millionaires.
Rounding out the top 10 were Santa Monica, CA‘s 90402; Beverly Hills, CA‘s 90210; Ross, CA‘s 94957; Portola Valley, CA‘s 94028; Los Altos, CA‘s 94022; Bridgehampton, NY‘s 11932; Palo Alto, CA‘s 94301; and Medina, WA‘s 98039.