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Region

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Home values are influenced by many factors, including the supply of homes and the strength of the local economy. The desire to own a home instead of renting is also a factor. In the Bay Area, demand has historically outpaced the supply of new homes. Home values saw dramatic increases in the wake of the COVID-19 pandemic, though that trend began to reverse after 2022 as the cost of borrowing has gone up. Still, the Bay Area remains one of the most expensive regions in the country for housing costs, hampering access to the region and its labor market, while placing a high cost burden on many families.

**Communities in Solano County are the least expensive options for homebuyers in the region, while Silicon Valley communities in Santa Clara and San Mateo Counties have the highest home values.**

The most affordable housing options in the Bay Area are located in Solano County, where in 2025 the typical home value ($574k) was approximately 51% lower than the average regional value of $1.17 million. While homes in Solano County are often newer and more affordable than the region as a whole, residents may face higher commute times and costs due to their distance from major job centers.\
\
At the other end of the spectrum, the highest typical home values can be found in Silicon Valley, where many cities far exceed the regional average. In 2025, the highest typical home values were Atherton ($7.16 million), Los Altos Hills ($5.52 million) and Hillsborough ($4.76 million).

Local Focus

**Bay Area home values have experienced dramatic fluctuations over the past two decades, shaped by economic cycles, industry growth and shifting demand.**

In 2006, after reaching an inflation-adjusted high of just over $1.1 million, the typical home value began to decline as the housing market bubble collapsed and the Great Recession set in. The typical home value in the Bay Area hit a low of $663,000 in 2012, after adjusting for inflation. However, values increased significantly during the 2010s, fueled by the region’s tech boom and national interest rate policy. Home values in the Bay Area peaked at $1.306M in 2022.\
\
In 2025, the typical home value in the Bay Area was $1,170,000, lower than the 2022 peak but still an inflation-adjusted 77% increase since 2012. What happens to Bay Area home values next will depend on how local jobs, national interest rates and housing policy change in the coming years.

Regional Performance

Zillow Home Value Index (ZHVI) is a measure of the typical home value and market changes across a given region and housing type. It reflects the typical value for homes in the 35th to 65th percentile range, and is available as a smoothed, seasonally adjusted measure and as a raw measure. As of January 2023, Zillow has updated their ZHVI methodology to use the neural Zestimate algorithm for estimating home values, which leverages neural networks and incorporates deeper history of property data such as sales transactions, tax assessments and public records, in addition to home details such as square footage and location. \
\
Bay Area regional home values are derived from the ZHVI at the county level while accounting for the relative size of each county's housing market. The regional values are calculated as weighted averages of county-level annual ZHVI data, with weights based on the number of housing units in each county (sourced from California Department of Finance datasets).\
\
Data are adjusted for inflation using Bureau of Labor Statistics metropolitan statistical area (MSA)-specific series. Inflation-adjusted data are presented to illustrate how home values have grown relative to overall price increases; that said, the use of the Consumer Price Index (CPI) does create some challenges given the fact that housing represents a major chunk of consumer goods bundle used to calculate CPI. This reflects a methodological tradeoff between precision and accuracy and is a common concern when working with any commodity that is a major component of the CPI itself.

[Zillow: Zillow Home Value Index (ZHVI)](http://www.zillow.com/research/data/ "Zillow: Zillow Home Value Index (ZHVI)")\
2000-2025\
\
[California Department of Finance](https://dof.ca.gov/forecasting/demographics/estimates/ "California Department of Finance: E-8 Historical Population and Housing Estimates for Cities, Counties, and the State")\
E-8 Historical Population and Housing Estimates for Cities, Counties, and the State\
2000-2020\
\
[California Department of Finance](https://dof.ca.gov/forecasting/demographics/estimates/ "California Department of Finance: E-5 Population and Housing Estimates for Cities, Counties, and the State")\
E-5 Population and Housing Estimates for Cities, Counties, and the State\
2020-2024\
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[Bureau of Labor Statistics: Consumer Price Index](http://data.bls.gov "Bureau of Labor Statistics: Consumer Price Index")\
2000-2025\
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[US Census ZIP Code Tabulation Areas (ZCTAs)](https://www.census.gov/programs-surveys/geography/guidance/geo-areas/zctas.html "US Census ZIP Code Tabulation Areas (ZCTAs)")\
2020 Census Blocks

Sources & Methodology

What are homes worth in the Bay Area?

Home Values

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The most fundamental view of the region is its overall population, jobs and land. Changes here can impact demand for transportation, housing and environmental resources.

The transportation system is the backbone of the regional economy and community - connecting people to places, workers to employers and goods to markets. Continued investments in the transportation network are critical to allow for the movement of freight and people.


The economy is the critical productive nexus where goods and services are provided and where revenue and salaries enter the hands of consumers. A healthy economy creates value for companies and workers. This group of indicators encompasses a range of measures related to economic activity.

The regional environment encompasses a range of indicators related to resilience and serve as a benchmark for key risks in our region - including greenhouse gas emissions, sea level rise, bay restoration and the quality of the air we breathe.

It is critical that the economy and housing market function in ways that reduce poverty and minimize disparities between communities by supporting jobs across wage levels and ensuring housing affordability at all income levels.

Requests	IP Address	Location	AS Autonomous System
19	63.176.8.218Aws · CLOUD	Frankfurt am Main, Hesse, Germany	AS16509Amazon.com, Inc.
18	35.157.26.135Aws · CLOUD	Frankfurt am Main, Hesse, Germany	AS16509Amazon.com, Inc.
18	142.251.110.95Google · CDN	United States	AS15169Google LLC
55	3	-	-

Security Scan Report: vitalsigns.mtc.ca.gov

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