Typical home value in one of the Bay Area’s hottest ZIP codes is a cool $3.8 million

The analysis looked specifically at two metropolitan areas: the San Francisco area, defined as Alameda, Contra Costa, San Francisco, San Mateo and Marin counties, and the San Jose area, defined as Santa Clara and San Benito counties.

Here’s what the analysis found:

Top 5 hottest ZIP codes in the San Francisco metro area:

• 94708 (Berkeley), $1,826,636 (typical home value)

• 94566 (Pleasanton), $1,609,969 (typical home value)

• 94526 (Danville), $1,691,574 (typical home value)

• 94506 (Danville), $2,596,442 (typical home value)

• 94965 (Sausalito), $1,575,285 (typical home value)

Top 5 hottest ZIP codes in the San Jose metro area:

• 95037 (Morgan Hill), $1,224,371 (typical home value)

• 95148 (San Jose), $1,275,591 (typical home value)

• 95120 (San Jose), $1,918,797 (typical home value)

• 94024 (Los Altos), $3,797,915 (typical home value)

• 95070 (Saratoga), $3,410,058 (typical home value)

Zillow determined the hottest ZIP codes in the two metro areas by taking the median online page views per home listing per day by ZIP code.

The top two ZIP codes in the Bay Area were 94708 in Berkeley, which runs adjacent to Tilden Regional Park and the Tilden Nature Area, and 95037 in Morgan Hill, just south of San Jose, which has plentiful access to amenities such as parks, restaurants and wineries.

Matt Kreamer, spokesperson for Zillow, said amenities can be an influential factor in demand, including access to green space and parks, or being near restaurants and nightlife.

Kreamer said interest in the Bay Area has been trending for several years, but the pandemic caused it to “really take off.”

“For people newly working remotely, that often means more space, room for a home office and outdoor space – attributes you are more likely to find in suburban homes,” he wrote in an email. “Those homes have become even more attractive when the length of a commute isn’t factored in as highly.”

Some of the top ZIP codes are particularly pricey, including 94506 in Danville, where the typical home value is $2.6 million; 94024 in Los Altos, with a $3.8 million typical home value; and 95070 in Saratoga, with a typical home value of $3.4 million.

“While some of these are indeed high-priced areas, it’s certainly relative,” Kreamer said. “And the Bay Area is by far the most expensive housing market in the country.”

Zillow’s August market report showed the number of available homes in the San Francisco metropolitan area rose last month, as did the share of listings with a price cut.

But the report showed home values — which Zillow calculates as an average of the middle third of the market, minus the top and bottom 5% — rose slightly from July, and were up 17.9% over last year. And Kreamer said the Bay Area continues to be an “extremely competitive market.”

“We expect home values to continue rising for the foreseeable future, and mortgage rates are still hovering near historic lows, which can save buyers hundreds of dollars each month,” he said. “The good news is that we are starting to see inventory rise a bit, and a slightly larger share of homes seeing price cuts.”