A typical home in the San Francisco-Oakland-Hayward, California metro area costs $718,400, more than the national median home value of $194,500.

The median home value in San Francisco is also higher than in California as a whole, where the typical home is worth $449,100. San Francisco’s median home value is also the second highest of any metro area in the state.

Residents of areas with more expensive real estate also tend to have relatively high incomes. In San Francisco, the typical household earns $88,518 annually, higher than both the $64,500 median household income statewide and $55,775 national figure. San Francisco has the second highest median household income of any California metro area.

Home values tend to be higher in dense, urban areas, where space is limited and land is more expensive as a result. The priciest homes in the country are in cities along the East and West Coast, where population density is also among the highest nationwide. In the San Francisco-Oakland-Hayward metro area, there are 1,755 people per square mile, far greater than the average urban population density of 283 Americans per square mile across all metro areas nationwide. San Francisco has the second highest population density of any California metro area.

Home values in the metro area may also be augmented by the health of the local job market. People often relocate for occupational reasons, and an area with lower unemployment is more likely to have more expensive real estate. The San Francisco-Oakland-Hayward metro area’s unemployment rate was 3.9% as of August 2016, lower than the 4.9% jobless rate nationwide.

Improved unemployment among the San Francisco-Oakland-Hayward workforce over the last five years — like most of the country — may have helped increase home values as a result. Since August 2011, the San Francisco unemployment rate has fallen by 5.2 percentage points. Over the same period, home values in the metro area increased by 28.0%. Nationwide, the unemployment rate improved by 4.1 percentage points as the median home value increased by 12.0%.

Areas with high home values are often fairly well-educated. In addition to the better-paying jobs that educated residents often hold, the presence of good schools and universities are likely to increase demand for nearby homes. In San Francisco, 47.2% of adults have at least a bachelor’s degree, a larger share than the 30.6% of Americans with similar education nationwide.

Rank Geography Median
Home Value
10 Santa Rosa, CA $512,100
9 Oxnard-Thousand Oaks-Ventura, CA $528,700
8 Los Angeles-Long Beach-Anaheim, CA $540,600
7 Santa Maria-Santa Barbara, CA $547,600
6 Napa, CA $555,900
5 Kahului-Wailuku-Lahaina, HI $569,300
4 Urban Honolulu, HI $629,900
3 Santa Cruz-Watsonville, CA $668,300
2 San Francisco-Oakland-Hayward, CA $718,400
1 San Jose-Sunnyvale-Santa Clara, CA $823,700