House prices in Los Altos continued to rise after 2020; however, Los Altos condo prices sagged downward. Is this a change in demand for houses compared to condos in Los Altos? With little new construction, a change in supply vs. demand would seem unlikely.
House Price vs. Condo Price in Other Areas
Newark House Prices and Condo Prices
Newark shows significant price growth for both houses and condos. Demand for Newark housing has grown stronger than Los Altos housing.
Union City House Prices and Condo Prices
Union City shows significant price growth for both houses and condos. Demand for Union City housing has grown stronger than Los Altos housing.
Remote Work
In 2020, opportunities to work remotely grew in response to the COVID-19 pandemic. Remote work would change the balance between cities, providing more benefits to those further from workplaces. Los Altos condo owners would see the change and possibly choose to move to a house further from their work than Los Altos. House owners would see less of an advantage and, due to taxes, could see it as remaining a negative change.
The willingness of condo owners to move could temporarily change house vs. condo purchase costs, but with time, the preferences would probably re-establish the old price ratio. Greater future price growth for Los Altos condos than Los Altos houses could result.
