Austin Business Journal writes, "California's 94027 stands alone when it comes to the nation's most expensive ZIP codes for housing.
The typical home value in 94027 - Atherton, which is located near San Francisco, was $7,711,460 in March 2024 — leading the way among all ZIP codes in America.
That’s according to research obtained for The Business Journals Wealthy 1000, a recent ranking of the nation's wealthiest ZIP codes based on a weighted formula that looks at numerous wealth metrics, including typical home value data from Zillow.
California's 94027 stands alone when it comes to the nation's most expensive ZIP codes for housing.
The typical home value in 94027 - Atherton, which is located near San Francisco, was $7,711,460 in March 2024 — leading the way among all ZIP codes in America.
That’s according to research obtained for The Business Journals Wealthy 1000, a recent ranking of the nation's wealthiest ZIP codes based on a weighted formula that looks at numerous wealth metrics, including typical home value data from Zillow.
When looking solely at home values, the list looks a bit different than the Wealthy 1000 overall — although the housing market is evolving, with many longtime hot spots now seeing price drops and buyers regaining leverage.
The national picture: California leads the pack
Joining Atherton - 94027 near the top were four other California ZIP codes: Beverly Hills - 90210 ($5,485,045), Los Altos - 94022 ($4,900,254), Newport Coast - 92657 ($4,788,812) and Santa Barbara - 93108 ($4,700,895).
Washington's Medina - 98039 ($4,463,121), outside Seattle, and New York's Water Mill - 11976 ($4,390,489), outside of New York City, were the only non-California ZIP codes in the top 10
California accounts for more than half of the nation's 1,000 priciest ZIP codes for home values, followed by New York (96), Massachusetts (74) and New Jersey (55).
Among metro areas, Los Angeles (203) led the way, joined near the top by fellow California metros San Francisco (115) and San Jose (55). New York (145) and Boston (58) were also among the metro areas with the most ZIP codes in the top 1,000 nationally.
Especially in California's case, those high prices have caused a number of challenges — and even contributed to an exodus of many residents to lower-cost regions during the pandemic. Many pockets of California and other states have also experienced such high home-price appreciation that the markets are now significantly overvalued compared to the purchasing power of local residents.
Housing dynamics are shifting
All told, 776 ZIP codes in the analysis had a typical home value above $1 million.
The average home value for the top 1,000 ZIP codes was $1.4 million. For reference, Zillow estimates the average American home value is $360,681 as of May 31, up 4.3% from 2023.
But the median value of new houses sold was $417,400, according to Zillow, down 0.9% compared to the prior year as a number of factors weigh on the housing market, including elevated interest rates.
However, these numbers could change as the real estate market catches up with migration patterns, particularly in recently surging metros in Arizona and Florida.
"I believe we are at an inflection point in the upper echelon of the luxury space where we may indeed see a new stratospheric price threshold pushed higher," Andrew Turley, president of Phoenix Valuations, recently told the Phoenix Business Journal.
Phoenix is the No. 2 destination nationwide for high-net-worth migration — behind South Florida — and Turley estimates it's only a matter of time before the metro's luxury market breaks that $30 million-$40 million threshold.
"Many luxury agents and luxury builders (believe) that if the right home is built to spec, Arizona will see price points above $30 million,” he said."
Source: Austin Business Journal
Written by: Joanne Drilling
Published: August 12, 2024
Posted by Grossman & Jones Group on
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