A lack of new housing. A rise in tech jobs. A central location in the heart of Silicon Valley. Mix those elements together and you end up with $1.3 million studio apartments.
Bloomberg took a look at Palo Alto, Calif. As professionals are flocking to the region to capitalize on rampant job creation (so much that the town’s mayor suggested that job growth needs to be curbed), home prices are exploding as current residents block new housing developments.
Hence, the median home value in the town has doubled to $2.5 million since 2006. The cheapest available home is a $969,000 one-bedroom condo, and a 790-square foot studio is on the market for $1.3 million. The middle class has long since been priced out of Palo Alto, but now even high earners might be forced to look elsewhere.