But, in particular, the past year has seen Alameda and Contra Costa emerge as real estate hotspots: the 10 major cities with the highest percentage growth in house prices from February 2021 to February 2022 were all in these counties.

Union City, Dublin, Pleasanton, San Ramon and Danville topped the list, according to Zillow, as potential buyers entered bidding wars to snap up sought-after properties.

“People love the location,” said Ronnie Escalante, a San Francisco-based real estate agent. “People also like the quality of life. These are cool neighborhoods where… you’re in the middle of everything.

The price of a typical home in Union City in February 2021 hovered at $1.05 million, according to Zillow. A year later, in February 2022, that amount was closer to $1.38 million, a 32% year-over-year increase for the city in Alameda County, the highest in the metropolitan area.

In San Ramon, the average home sold for $1.43 million in February 2021. In February 2022, that figure was $1.83 million, a 27% year-over-year increase and highest in Contra Costa County.

Typical home prices are calculated by Zillow economists by averaging the median 30% of homes sold.

Buyers are eyeing a wider range of cities now that remote work is here to stay. Although some workplaces have returned to the office, whether fully in-person or in a hybrid setting, more than 60% of businesses nationwide expected to maintain their expanded work-from-home shifts after the pandemic subsided, according to a February report from the Bureau of Labor Statistics.

They also assess the social and cultural life of each city. Before the pandemic, people rented or bought homes in big cities like San Francisco and Oakland for access to restaurants, nightlife and museums.

But as the availability of such equipment has declined during the pandemic, demand for purchases in those areas has also declined, said Jeff Tucker, senior economist at Zillow.

Before, the I-680 and I-580 corridors may have felt far from bustling employment and nightlife hubs. Today, suburbs with easy access to BART and freeways attract people looking for more space.

“East Bay looks attractive as a great place where you’re close enough to partake in city life, commute to the office, or hang out with friends, but your money always goes further,” Tucker said. .

Still, homes in San Francisco have become more expensive during the pandemic. Prices for typical homes increased nearly 12% from $1.41 million in February 2021 to $1.58 million in February 2022, according to Zillow.

Some smaller localities in the San Francisco metro area also saw spikes in price growth. Emerald Lake Hills in San Mateo County and Bolinas in Marin County saw the strongest year-over-year growth in their counties, at 24% and 28% respectively.

Data provided by Zillow covered 99 cities in Alameda, Contra Costa, Marin, San Francisco, and San Mateo counties. Only two communities, La Honda and Pescadero in San Mateo County, saw declines in typical home prices from February 2021 to February 2022.

These places are small, with populations of less than 1,000 people, according to the US Census Bureau. A few more homes may have been built there during the pandemic, but their low housing stock makes it difficult to determine why prices have changed, Tucker said.

So, with interest rates starting to rise, will house prices soon fall in the region? Experts think it’s not easy to predict.

“We see so many people throwing offers, and everyone is looking for a deal,” Escalante said.

Tucker, the economist, thinks the pandemic has accelerated the dreams of many people who might otherwise have put off buying a home for a few more years. A combination of low interest rates, working remotely and restricted access to their social lives has prompted them to reevaluate their priorities, he said, and buy homes as soon as they hit the market. .

“People don’t mind paying more money than God for a house,” Tucker said.

Gwendolyn Wu (her) is a staff writer for the San Francisco Chronicle. Email: [email protected]