Housing Market Overview
The median home price (often called the average home price), rent costs, affordability metrics, and housing stock characteristics for this housing market.
Housing Market Overview
| Metric | Palo Alto | California Avg | US Average |
|---|---|---|---|
| Median Home Price | $2,000,000 | $642,203 | $242,182 |
| Price Trend (Annual %) | 0.0% | 10.0% | 8.2% |
| Median Gross Rent | $3,298 | $1,955 | $1,342 |
| Rent Trend (Annual %) | 5.7% | 6.0% | 5.1% |
| Household Income Trend (Annual %) | — | — | — |
The median home price in Palo Alto is about 211% higher than in California. Rent is about 69% higher than the California average.
Median Home and Rent Price Trends
Median Home Prices, 2015-2023
Median Rent Prices, 2015-2023
Both home prices and rent are falling in Palo Alto, down about 0.0% and 5.7% a year respectively. Rent is changing faster.
Median rent in Palo Alto rose about 51.9% between 2015 and 2023, from $2,172 to $3,298. Over the same span, rent in California rose about 55.7%.
Affordability
On average, housing unit costs 10.0 yearly household incomes in Palo Alto.
Buying the median-priced home in Palo Alto costs roughly 50.5 years of rent at the median monthly rate. That is a relatively high price-to-rent ratio, which tends to favor renting over buying in Palo Alto. The price-to-rent ratio in California is about 27.4.
| Metric | Palo Alto | California Avg | US Average |
|---|---|---|---|
| Median Home Price | $2,000,000 | $642,203 | $242,182 |
| Median Household Income | $200,000 | $96,718 | $78,145 |
| Price-to-Income Ratio | 10.0 | 6.6 | 3.1 |
Home Prices vs Income Over Time
Between 2015 and 2023, the median home price in Palo Alto rose about 55.2%, while median household income rose about 89.2% between 2009 and 2023 — income grew faster than the home price.
Income Growth vs Housing Cost Growth (Year-over-Year %)
Compare income and housing cost trends.
Occupancy & Tenure
| Metric | Palo Alto | California Avg | US Average |
|---|---|---|---|
| Homeownership Rate | 47.5% | 51.6% | 58.2% |
| Rental Rate | 41.9% | 40.9% | 31.3% |
| Vacancy Rate | 10.6% | 7.6% | 10.6% |
| Median Tenure (years) | 14.0 | 15.0 | 15.0 |
| Median Year Moved In | 2012 | 2011 | 2011 |
Palo Alto has a homeownership rate of 47.5%, lower than the California average of 51.6%. Its housing vacancy rate is 10.6%, compared with 7.6% in California.
Housing Stock
| Metric | Palo Alto | California Avg | US Average |
|---|---|---|---|
| Average Household Size | 2.53 people | 2.85 people | 2.54 people |
| Median Structure Built Year | 1966 | 1975 | 1978 |
| Median Number of Rooms | 5.0 | 5.0 | 5.5 |
The typical housing unit in Palo Alto was built around 1966. On average, 2.5 people live in a home with about 5.0 rooms, staying for about 14.0 years on average.
Frequently Asked Questions
Common questions about the housing market in Palo Alto, California.
What is the median home price in Palo Alto, California?
The median home price in Palo Alto, California is $2,000,000, higher than the California average of $642,203.
What is the average home price in Palo Alto, California?
The typical home price in %s, reported as the median sale price, is %s. The median is used instead of a mathematical average because it is not skewed by a small number of very expensive or very cheap homes, so it better reflects what a typical buyer pays.
What is the median rent in Palo Alto, California?
The median gross rent in Palo Alto, California is $3,298 per month, higher than the California average of $1,955.
What was the median gross rent in Palo Alto in 2020?
In 2020, the median gross rent in Palo Alto, California was $2,665 per month.
What is the price-to-rent ratio in Palo Alto, California?
The price-to-rent ratio in Palo Alto, California is about 50.5, meaning it would take roughly 50.5 years of rent payments at the median rent to equal the median home price. That is a relatively high price-to-rent ratio, which tends to favor renting over buying in Palo Alto.
Are home prices or rent rising faster in Palo Alto, California?
Both home prices and rent are falling in Palo Alto, down about 0.0% and 5.7% a year respectively. Rent is changing faster.
What is the homeownership rate in Palo Alto, California?
47.5% of households in Palo Alto, California own their home, lower than the California average of 51.6%.
What is the vacancy rate in Palo Alto, California?
The housing vacancy rate in Palo Alto, California is 10.6%, higher than the California average of 7.6%.