Two of the nation’s Top 10 suburban hotspots are in the Bay Area: Dublin in the East Bay, and Milpitas in the South Bay.
That’s according to a new report from realtor.com measuring the “hotness” of suburbs that have become hubs for increasing prices, fast home sales and intense competition among buyers. Essentially, these suburban hotspots are capturing spillover from nearby “hot” metro areas where home prices have become prohibitive.
“In recent years, rising home prices and inventory shortages in urban centers have made affordable suburban home prices more appealing for buyers,” said Jonathan Smoke, realtor.com’s chief economist. “Our analysis indicates 50 percent of buyers planning to purchase a home this spring indicated they preferred a home in the suburbs.”
Realtor.com defines the “hottest” areas as those where houses sell most quickly and generate the most listing views.
No. 1 on the new list is Northeast/Montbello, Colorado, a suburb of Denver.
Dublin and nearby Dougherty — an unincorporated community, just north of Dublin — rank together as No. 3. This suburban stretch of Alameda County is “predominantly made up of upper-middle-class families that are first-time homeowners,” many planning to to take advantage of good schools, according to the report. “Many of the residents are computer engineers that are attracted to the more affordable cost of living, as compared to Silicon Valley. The number of households in this neighborhood grew by 25.6 percent between 2010 and 2017 … A typical property within this ‘burb spent 24 days on the market in 2016.”
Milpitas, just north of San Jose, is No. 8 on the list. It, too, increasingly appeals to “upper-middle-class established professionals with families who work in the tech industry. New construction is booming in this area to facilitate the ever-increasing demand for Silicon Valley housing. The number of households in this neighborhood grew by 15.5 percent between 2010 and 2017 … A typical property within this suburb spent 23 days on the market … The listing price of properties in this suburb grew 12.8 percent annually between 2013 and 2016.”
You can read the full report here.
Top: Map courtesy of realtor.com.