U
ltra-high coastal real estate prices are a harsh reality for many Californians. However, there's a silver lining: look inland. Atherton, California, has maintained its title as the priciest Zip code in America despite a 5% drop in median home price to $7.9 million per property sold. Newport Beach is close behind, with three Zip codes boasting median prices over $4.6 million.
Seven of the top ten most expensive Zips in the nation are located in California, with sales prices often exceeding $10 million. While coastal areas like Atherton may offer stunning views and waterfront properties, inland areas like Glendale, Pasadena, and Rancho Bernardo offer extremely livable homes at a fraction of the cost.
In fact, many young families seeking to buy their first home are turning to these inland areas due to unaffordable prices in coastal communities. California's inland regions are growing faster than coastal locales, with cities like Tracy and Elk Grove experiencing rapid growth.
The national picture is similar, with high prices rising across the country. The top ten most expensive Zips include one in Miami Beach, Florida, and two on Long Island, New York. Despite a slight dip in 2022 and 2023, real estate prices rose again this year in most places, with two-thirds of the nation's 100 priciest Zip codes seeing sale price increases.
The result is a record number of Zip codes with median sale prices over $4 million, including 15 areas where prices have reached new heights. Cities like New York and Los Angeles continue to dominate the high-price rankings, with Palo Alto trailing closely behind. The clustering of expensive Zips in California's major counties has driven many young professionals to live elsewhere while telecommuting to jobs in the state.
As a result, neighboring states are experiencing significant growth, with ex-Californians driving up prices and changing local politics. For those seeking affordable housing options, looking inland – even to desert areas – is becoming an increasingly necessary choice.
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