2024 Menlo Park Real Estate Market Forecast

Located in Silicon Valley, Menlo Park is an upscale, suburban city home to many great companies, restaurants, parks, and shops. Menlo Park's real estate market is one of the hottest in the Silicon Valley region for many reasons. Menlo Park is located conveniently between San Francisco and San Jose, and residents enjoy a 28-minute commute from their home to San Jose and a 35-minute drive to San Francisco, making it a great place to live for career-oriented residents and working professionals. The area is also home to outstanding amenities, such as excellent schools, including Phillips Brooks School and Stanford University. Locals have plenty of time to enjoy their community’s recreational spaces, as the area boasts an average of 265 sunny days per year.

 

Those looking to move into the area have a vast range of housing options from Menlo Park's neighborhoods, from single-family homes with spacious lots to estates boasting awe-inspiring views of the Pacific Coastal Range and the San Francisco Bay. Before buyers begin their home search, they may be wondering what the real estate market is going to look like in 2024. Below is an insider's look at Menlo Park’s real estate market forecast.

Menlo Park's home prices have been increasing in recent years thanks to the high demand for housing by professionals working in Silicon Valley. Menlo Park's median home price is $2,811,212, with a total home appreciation of 84.7% in the last ten years. This trend is expected to continue in 2024, with home values expected to rise to $2,961,388, translating to an appreciation of 5.34%.

Interest rates have been on the rise in recent years due to the Federal Reserve’s efforts to combat inflation. This has impacted mortgage rates. According to the latest FHFA house price index, the average interest rate for 30-year fixed mortgage loans was 6.27% in January 2023. This is a decrease from the previous month, which saw rates of 6.36%. Interest rates are expected to continue increasing but at a slower pace.

The United States is home to over 585,000 technology companies, many of which are in Silicon Valley. These technology giants hire thousands of employees who require housing — and that’s only expected to increase. America’s technology industry is growing rapidly, with an expected growth rate of 5.4% in 2023. This growth is expected to continue in 2024. As the technology industry continues to expand, more people will likely be moving to Silicon Valley in search of jobs.

 

Menlo Park is ideally located at the center of Silicon Valley and will be the first choice for most high-tech employees. Therefore, the demand for housing will increase. Landlords in Menlo Park may capitalize on this trend and maximize their rental income. For those considering real estate investments, this could be the year to start growing their financial portfolio.

Menlo Park had a population of 33,780 people in 2020, just up from 32,026 in 2010. This indicates a population increase of 5.48% in ten years. Several factors contributed to this population increase, including high quality of life, a strong technology industry, and great weather. This city still retains its charm as an ideal metropolitan location to live in and is therefore expected to increase its population in 2024. This influx of new residents could lead to increased demand for properties, which could drive up rental prices and home values.

San Mateo County's housing market in 2024 will likely be strong. This is due to several factors. First, the demand for housing in San Mateo County is expected to rise in 2024 as more people move to the region to participate in its relatively high-paying technology job market. This demand will be particularly high in desirable areas such as Menlo Park.

 

San Mateo County is also synonymous with a low inventory of homes for sale. In March 2023, the listings in Menlo Park only consisted of 379 single-family residential homes and 132 condominiums and townhouses. This was a decrease of 10.3% for residential homes and 30.7% for condominiums and townhouses compared to the previous month. As a result, home values have continued to rise, which is likely to continue in 2024.

The COVID-19 pandemic significantly impacted many sectors of the economy, including the real estate market. It changed how real estate business was conducted, including in-person property visits and open houses. It also significantly changed inventory numbers and home prices.

 

Menlo Park's real estate market has always been strong and was not as greatly affected by the COVID-19 pandemic as other parts of the country. While the market stood at a standstill in early spring 2020 thanks to lockdowns and other government restrictions, it quickly rebounded after about two months and has continued to grow. In 2024, the market is expected to continue growing as the economy continues to recover and Silicon Valley experiences an influx of new jobs.

California recorded 95,712 total foreclosure filings in the first quarter of 2023. This is a relatively low number considering the state has over 14.5 million housing units. Many California foreclosures are found in the following counties: Kern, Shasta, Madera, Siskiyou, and San Bernardino. San Mateo County, and thus Menlo Park, is associated with lower foreclosure rates. This trend is expected to continue in 2024.

Menlo Park is home to many luxurious properties equipped with ultra-modern amenities and features. Here, residents will find an array of exciting community attractions, such as distinctive parks like Bedwell Bayfront Park, high-end shopping, and numerous upscale restaurants. Locals also appreciate the reasonable cost of living in Menlo Park. As a result, its real estate market is expected to continue on a positive trajectory in 2024. People looking to move to Silicon Valley should consider Menlo Park as their next home.

If you are looking to move to Menlo Park, work with real estate expert Katherine Hunt to find your next home. Katherine has purchased and sold properties in Silicon Valley for over 29 years and has a deep knowledge of the area. Contact Katherine today to get started on finding your next dream home in Menlo Park.