Impact of High Tech – East Palo Alto


As of Dec 2016 most Silicon Valley homes have increased in value by roughly 40% from their peak near 2007 (before the banking crisis). However not all cities suffered equally nor have all recovered equally. East Palo Alto was hit especially hard by the downturn. Houses dropped in price from about $500 sq.ft. to about $210 sq.ft. East Palo Alto was probably the hardest hit Silicon Valley City. However Facebook moved from Palo Alto to the east end of Willow Road in east Menlo Park. The $210 sq.ft. value of an East Palo Alto house has climbed to about $600 sq.ft. (year’s avg for 2016). This is roughly 20% above its $500 sq.ft. price in 2006 or 2.86 times its low point in 2009.It’s important to keep in mind that Page Mill Properties had exploited loopholes in the city’s rent control ordinance in an attempt to make huge profits which failed dramatically and led to Wells Fargo foreclosing on properties purchased with about $250 million and to Page Mill Properties losing control of 1,800 housing units in 2009.

Looking across the Bay at Union City we see prices peaking at $400 sq.ft in 2005, falling to $250 sq. ft. in 2011, then climbing to $440 sq.ft. in 2016. This is about 10% above its price in 2006.


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