Prospective buyers in California may have trouble landing their forever homes in cities like Los Angeles or San Francisco due to expensive home prices.
For those who still want to live near the big cities and have a little flexibility on location, a new study from Go Banking Rates reveals which California neighborhoods are cheaper alternatives to those famous, yet expensive, areas.
Here are the most expensive zip codes in California:
- Atherton (94027) Typical home value in 2023: $7.36 million
- Beverly Hills (90210) : Typical home value in 2023: $5.11 million
- Los Altos Hills (94022): Typical home value in 2023: $4.26 million
- Santa Monica (90402) : Typical home value in 2023: $4.17 million
- Montecito (93108) : Typical home value in 2023: $3.94 million
- Rancho Santa Fe (92067) : Typical home value in 2023: $3.9 million
- Newport Beach (92657): Typical home value in 2023: $3.86 million
Here are cheaper neighborhoods alternatives for home buyers:
- Santa Clarita: Average home price $753,130
- Agoura Hills: Average home price: $1.1 million
- Barstow: Average home price: $253,617
- Clearlake: Average home price: $221,967
- Crescent City: Average home price: $346,556
- Riverside: Average home price: $584,915
While real-estate experts who spoke with Go Banking Rates acknowledged that home prices in some of the cheaper neighborhoods have increased, prices are still lower than the average median price for homes in big cities such as San Francisco and Los Angeles.
The average home price in San Francisco is over $1.2 million and is over $900,000 in Los Angeles, according to Zillow data.
For prospective buyers who want to live in California’s metropolitan areas, many homes sold below the asking price in January, primarily in the Bay Area.
A recent study from Redfin found that the rate of people looking to leave San Francisco has started to slow as home prices in the Bay Area dip.
Experts say the dramatic year-over-year price drops and fizzling competition in the Bay Area may not hit the rest of the state similarly.