Palo Alto, CA—94306
Real Estate Data & Market Trends
Key Metrics at a Glance
Other Zip Codes in Palo Alto, CA
Home Price Trends — Palo Alto, CA
As of Oct '25, the median home price in Palo Alto, CA is $3,274,000, with a year-over-year change of 1.6%. This indicates that home prices in Palo Alto, CA are increasing. According to Zillow, the 1-year price projection is 1.5%, suggesting an increase housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $3,274,000 | 1.6% |
| Single Family | $3,437,000 | 1.3% |
| Condos | $1,139,000 | -4.1% |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | $895,000 | -3.9% |
2 Bed | $1,780,000 | 1.8% |
3 Bed | $3,101,000 | 2.2% |
4 Bed | $3,759,000 | 1.0% |
| 5 Bed | $4,500,000 | 0.1% |
% of Housing Stock
Rental Trends — Palo Alto, CA
As of July '25, Rentcast reports the average rent in Palo Alto, CA is $4,560, with a year-over-year rent change of 1.8%. Per bedroom, the median rent as of July '25 in Palo Alto, CA is studios: $2,480, 1-bedrooms: $2,760, 2-bedrooms: $4,050, 3-bedrooms: $6,810, 4-bedrooms: $8,590. The most common rental property sizes in Palo Alto, CA are 2-bedroom and 1-bedroom, accounting for 35.9% and 30.6% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $3,870 | $4,560 |
| Studio Rent | $2,040 | $2,480 |
| 1 Bed Rent | $2,700 | $2,760 |
| 2 Bed Rent | $3,900 | $4,050 |
| 3 Bed Rent | $7,000 | $6,810 |
| 4 Bed Rent | $8,000 | $8,590 |
% of Rental Stock
Property Listings — Palo Alto, CA
As of Oct '25, Realtor.com reports that the median days on market for a home in Palo Alto, CA is 35. This is a increase of 38.0% from last year, suggesting that homes are sitting on the market longer than last year. The percentage of listed homes with a reduced price is 18.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $2,400,000 | -1.0% |
Listing Count | 34 | 14.0% |
| Listings as % of Homes | 0.1% | 14.0% |
Days on Market | 35 | 38.0% |
Demographics — Palo Alto, CA
As of the latest ACS Survey released in 2023, Palo Alto, CA has a population of 27,500, which has remained stable by -0.1% over the past 5 years. Palo Alto, CA is a moderately popular place for families, as children make up 22.4% of the population. The area has a highly educated workforce, with 80.5% of adult residents holding a bachelor’s degree or higher. There are many residents working remotely, with 32.2% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 27,500 | -0.1% |
% Under 18 | 22.4% | -7.1% |
% Seniors | 18.0% | 2.9% |
% WFH | 32.2% | 329.3% |
% w/ College Degree | 80.5% | 1.8% |
As of the latest ACS Survey released in 2023, Palo Alto, CA is a predominantly white area, with 45.3% of the population identifying as white. The white population has shrunk by 11.4% in the last 5 years. The second most common race or ethnicity in Palo Alto, CA is asian, making up 37.4% of the population. Foreign-born residents account for 35.7% of the population in Palo Alto, CA, and this percentage has decreased by 2.7% as of the ACS Survey 5 years prior, suggesting fewer immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 45.3% | -11.4% |
% Black | 2.4% | 50.0% |
% Hispanic | 8.2% | 22.4% |
% Asian | 37.4% | 4.8% |
% Foreign Born | 35.7% | -2.7% |
Mortgage and Risk — Palo Alto, CA
According to HUD data as of 2023, there were 198 mortgage originations in Palo Alto, CA, of which 99.0% of loans were conventional mortgages. The average loan-to-value was 44.0%, with 0.0% above 90% LTV (normal). This implies small mortgage risk in Palo Alto, CA. Investor activity is low, as 3.0% of loans were by investors. 7.0% of loans were cash-out refinances, suggesting few homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 198 |
% Conventional Loans | 99.0% |
% Government Loans | 1.0% |
% Investor Loans | 3.0% |
% Second Loans | 1.0% |
% Cash Out Refinance | 7.0% |
Loan Activity
Rentals and Section 8 — Palo Alto, CA
As of 2024, the percent of homes in Palo Alto, CA under the Section 8 program is 8.8%. This is considered low, suggesting that the neighborhood is sparsely composed of Section 8 homes. Section 8 opportunity is good when HUD pays more than market rent. 1-bedroom units appear to be good home sizes to consider for Section 8 housing in Palo Alto, CA, because HUD payments exceed market rent, while 2-bedroom and 3-bedroom and 4-bedroom units do not.
Section 8 Market Size
Total Units under HUD | 502 |
Total Units Section 8 | 443 |
% Rentals under Section 8 | 8.8% |
% Occupied Section 8 | 94.5% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $560 | $2,700 | $3,260 |
| 2 Bedroom | -$120 | $3,900 | $3,780 |
| 3 Bedroom | -$2,090 | $7,000 | $4,910 |
| 4 Bedroom | -$2,650 | $8,000 | $5,350 |
Affordability — Palo Alto, CA
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 15.8 |
| Median Home Price | $3,274,000 |
| Median Household Income | $186,000 |