Technology companies are fueling one of the most expensive real estate markets in the country, according to the annual Coldwell Banker real estate home listing report.
Homes in Northern California’s Silicon Valley, home to the technology companies Facebook, Google and Apple, are $1.6 million more expensive than listing prices for similar homes in the Midwest. Prices in Los Altos, Calif., average $1,706,688 for a two-bedroom, two-bathroom home, while the average price for a similar home in Redford, Mich., is $60,490. The average price nationwide is $292,152.
The most expensive state, however, is not California. It’s Hawaii, with an average listing price of $742,551. It’s followed by Massachusetts, with $489,063. California comes in third at $431,625.
The most affordable state is Nebraska at $145,360, followed by Iowa at $162,621 and Kansas, with an average listing price of $169,650.
When broken down by area, the top five most expensive markets are in California — four of them in Northern California. Four of the top 20 most affordable markets are in Michigan. Georgia and Florida also each claim four of the most affordable markets in the top 20.
House price fluctuations usually affect coastal states the most, so it’s not surprising that those states have the most expensive markets. But it’s interesting to note that living just outside those costly areas can be surprisingly affordable. For example, Newport Beach, Calif., has an average home listing price of $1,658,000, but if you head just about an hour east to Lake Elsinore, you’ll see a similar home listed for $192,804.
Keep up with your wealth and mortgages, and follow me @JudyMartel on Twitter.
Get more news, money-saving tips and expert advice by signing up for a free Bankrate newsletter.