Piedmont Market Update - October 2024

Your Trusted Piedmont Real Estate Team – Buy or Sell with Confidence

Thinking of buying or selling a home in Piedmont? At Calia Homes, we specialize in guiding East Bay clients through the unique Piedmont real estate market with care and confidence. Whether you're searching for your dream home on a quiet tree-lined street or preparing to sell a legacy property near Piedmont Park or Crocker Highlands, our experienced Piedmont Realtors provide trusted advice, deep local insight, and a people-first approach. With decades of experience and a reputation built on referrals, we’re here to help you make smart, successful real estate decisions in Piedmont and the surrounding East Bay communities.

The House Price Super-Cycle

“Housing seems to have a remarkable ability to keep appreciating, whatever the weather.” The Economist, October 2024 In a recent issue of The Economist, the paper outlined three drivers that they believe will ensure that, for decades to come, the housing market will continue on an upward trend. They are:

Demographic Shifts

Across the globe, the foreign-born population is rising at an annual rate of 4%, the fastest growth on record. Immigration increases the demand for housing, pushing both rents and home prices higher. Research has shown that even a small uptick in the immigration rate can significantly increase average house prices.  Given that these three factors are relevant in the Bay Area, we expect that housing prices will continue their upward cycle. This is also supported by the trend in our local market chart shown below.

The Appeal of Urban Living

When the pandemic began, many assumed that the rise of remote work would reduce the allure of living in cities. According to The Economist, this has not been the case. They found that, while remote work is more prevalent, 37% of businesses are still located in larger cities. Interestingly, the same share as in 2019. Consequently, urban centers like Oakland, Berkeley, and Walnut Creek retain their appeal due to the availability of jobs, amenities, and social opportunities. The competition for housing in these cities has remained intense, driving prices upward, particularly in

desirable neighborhoods where housing supply is limited.

Infrastructure and Housing Supply Constraints

Infrastructure challenges, limited land, and regulatory constraints have limited housing supply growth. The lack of supply is most notable in cities where restrictions against building new housing are the strictest. Further, recent studies have found that areas with rent-control actually see a decrease in the supply of rental housing. They found that, for instance, rental housing supply in Berkeley decreased 7.5% after two decades of rent control.