Small Houses, Big Prices in Palo Alto, Calif.
According to CNBC, Palo Alto, California, is considered one of the most highly sought-after communities in the San Francisco Bay area. That, of course, means there’s a huge demand for homes and a fairly low inventory, leading to small houses more aptly defined as bungalows selling for millions of dollars.
In one concrete example, a 990-square-foot home with two bedrooms and one bathroom recently sold for $3 million.
“Given what’s going on with income growth, unless there is a crash in tech, I see this as sustainable in the near term,” Nancy Wallace, a professor at the U.C. Berkeley Haas School of Business, said.
Image via Wikimedia Commons/Jawed Karim