Values of Silicon Valley homes race ahead of the average
Posted on Tuesday, October 27, 2015 at 9:59:46 AM
Values of Silicon Valley homes owned by workers in the tech industry are growing at a much faster rate than the U.S. average. They are also much more expensive, according to this week's press release from Zillow, the online real estate database. Silicon Valley home values were three times above the national average just five years ago, but now, the typical tech worker owns a home five times more valuable than that of his non-tech neighbor.
The skyrocketing values are due to the wealth of high-paying jobs at tech companies in the Silicon valley area. Zillow's analysis found that most workers at Facebook's headquarters in Menlo Park, California lived in homes with a median value of $1.25 million, which was actually slightly less than the median value of homes owned by Google employees, $1.28 million.
Silicon Valley homes are an outlier in the luxury market. Whereas the U.S. housing market overall is doing very well, Redfin reported last month that through the first two quarters of 2015, luxury home sales, or those in the top 5 percent of the market, stayed flat compared to those in the bottom 95 percent, which comparatively grew 10 times faster.
No matter where you live, if you're looking to buy a house, now is the time to consult your bank about lending money and secure a home for the future.