Palo Alto, CA


Highest Appreciating Palo Alto Neighborhoods Since 2000

Palo Alto, CA Real Estate Data

Source & Methodology

Analytics built by:   Location, Inc.

Raw data sources:   American Community Survey (U.S. Census Bureau), U.S. Department of Housing and Urban Development, Federal Housing Finance Agency.

Date(s) & Update Frequency:
  • Home Values, Rents: Reflects Q1 2017. Updated quarterly.
  • Setting, Housing Stock, Homeownership: 2015 (latest available). Updated annually.

Methodology:   NeighborhoodScout uses over 600 characteristics to build a neighborhood profile… Read more

Palo Alto Housing Market Information

With a population of 66,853, 26,087 total housing units (homes and apartments), and a median house value of $2,147,403, Palo Alto house prices are not only among the most expensive in California, Palo Alto real estate also is some of the most expensive in all of America.

Single-family detached homes are the single most common housing type in Palo Alto, accounting for 56.49% of the city's housing units. Other types of housing that are prevalent in Palo Alto include large apartment complexes or high rise apartments ( 30.71%), row houses and other attached homes ( 6.30%), and a few duplexes, homes converted to apartments or other small apartment buildings ( 6.11%).

The most prevalent building size and type in Palo Alto are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 54.60% owning and 45.40% renting.

At the end of World War II, American soldiers returned home triumphant and, with the help of the GI Bill, built homes by the millions on the edges of America's cities. These homes were predominantly capes and ranches, modest in size, but built to house a growing middle-class as the 20th century became the American century. Palo Alto's housing was primarily built during this period, from the '40s through the '60s. A full 50.04% of the city's housing hails from this era. Other housing ages represented in Palo Alto include homes built between 1970-1999 ( 25.36%) and housing constructed before 1939 ( 13.20%). There's also some housing in Palo Alto built between 2000 and later ( 11.41%).

Palo Alto Home Appreciation Rates

In the last 10 years, Palo Alto has experienced some of the highest home appreciation rates of any community in the nation. Palo Alto real estate appreciated 46.66% over the last ten years, which is an average annual home appreciation rate of 3.90%, putting Palo Alto in the top 10% nationally for real estate appreciation. If you are a home buyer or real estate investor, Palo Alto definitely has a track record of being one of the best long term real estate investments in America through the last ten years.

Appreciation rates are so strong in Palo Alto that despite a nationwide downturn in the housing market, Palo Alto real estate has continued to appreciate in value faster than most communities. Looking at just the latest twelve months, Palo Alto appreciation rates continue to be some of the highest in America, at 7.17%, which is higher than appreciation rates in 82.25% of the cities and towns in the nation. Based on the last twelve months, short-term real estate investors have found good fortune in Palo Alto. Palo Alto appreciation rates in the latest quarter were at 0.59%, which equates to an annual appreciation rate of 2.39%.

Relative to California, our data show that Palo Alto's latest annual appreciation rate is lower than 60% of the other cities and towns in California.

One very important thing to keep in mind is that these are average appreciation rates for the city. Individual neighborhoods within Palo Alto differ in their investment potential, sometimes by a great deal. Fortunately, you can use NeighborhoodScout to pinpoint the exact neighborhoods in Palo Alto - or in any city or town - that have the best track record of real estate appreciation, by the latest quarter, the last year, 2 years, 5 years, 10 years, or even since 2000, to assist you in making the best Palo Alto real estate investment or home purchase decisions.

Average Home Values


Median Home Value:


Value Range
> $1,320,000 77.9
$990,001 - $1,320,000 10.5
$660,001 - $990,000 5.8
$528,001 - $660,000 0.8
$396,001 - $528,000 1.2
$264,001 - $396,000 1.0
$132,001 - $264,000 1.4
$66,001 - $132,000 0.3
$0 - $66,000 1.1

Very High for CA
Very High for Nation

Value Relative to Nation Value Relative to State
0.134770889487871 2.11640211640212

Number Of Homes And Apartments:

Palo Alto Appreciation Rates

Time Period Total Appreciation Avg. Annual Rate Compared To
Compared To
Latest Quarter:
2016 Q4 - 2017 Q1
Last 12 Months:
2016 Q1 - 2017 Q1
Last 2 Years:
2015 Q1 - 2017 Q1
Last 5 Years:
2012 Q1 - 2017 Q1
Last 10 Years:
2007 Q1 - 2017 Q1
Since 2000:
2000 Q1 - 2017 Q1
109.54% 4.38% 8 10
* 10 is highest

Rent & Ownership


Average Market Rent:
$3,495 / per month

Homeownership Rate

Owners 54.60
Renters 45.40
Vacant 5.33

Housing Market Details


Age of Homes

2000 or Newer 11.4
1970 - 1999 25.4
1940 - 1969 50.0
1939 or Older 13.2

Types of Homes

Single-Family 56.5
Townhomes 6.3
Small Apt. Buildings 6.1
Apt. Complexes 30.7
Mobile Homes 0.4
Other 0.0

Home Size

No Bedroom 4.39
1 Bedroom 16.41
2 Bedrooms 23.39
3 Bedrooms 29.61
4 Bedrooms 19.31
5 or more bedrooms 6.90