East Palo Alto vs. Palo Alto: Real Estate Price Comparison (2025)

In Silicon Valley, real estate has always served as a barometer for economic status, access, and opportunity. Nowhere is that more evident than in the neighboring communities of Palo Alto and East Palo Alto. Sharing a border that runs along San Francisquito Creek, the two cities are geographic siblings, yet separated by a dramatic divide in housing prices, lifestyle, and perception. Heading into August 2025, the contrast between these neighboring markets remains pronounced, with Palo Alto's median listing price for all single-family homes at $4.25 million, while East Palo Alto's median sits at a comparatively modest $968,000.

This post explores the latest data from both markets, providing a snapshot of how price, demand, and value are playing out between two adjacent cities with very different real estate profiles.

Palo Alto remains one of the priciest cities, not just in California, but in the entire United States. In July 2025, the median sold price was $4.25 million, according to data from the California Association of Realtors (CAR). Representing a year-over-year increase of 12.6%, the scale of pricing in Palo Alto remains unmatched in the region, with homes selling on average 5% above list price and closing in just 14 days.

Compare that to East Palo Alto, where the median sold price was $968,000, a 12% departure from the same time frame last year. Interestingly, East Palo Alto's market also sees purchases made well beyond the list price, an average of 8% higher. Homes in East Palo Alto take an additional week to sell.

While the pricing gap remains wide, it's not static and is partially a function of the market size. East Palo Alto is hemmed in by Palo Alto to the south and Menlo Park to the west and east. While the market remains largely residential, its overall footprint is considerably smaller, extending only a few blocks beyond the Bayshore Freeway, and resulting in greater swings in performance. Located in San Mateo County, July numbers for East Palo Alto include just four single-family home sales. Year to date, the city's median sold price sits at $1.09 million across 37 home sales.

By contrast, Palo Alto's market is more than three times the size of its neighbor. Year to date, the city's overall performance remains impressive, with a median sales price of $3.9 million from 222 home sales.

The lower pricing in East Palo Alto doesn't necessarily translate to smaller homes. Lot sizes can be generous, but homes in the city tend to be more modest in square footage and age. Conversely, Palo Alto offers a high concentration of recently updated or custom-built homes in architecturally significant styles, contributing to its luxury pricing tiers.

One of the characteristics shared by both cities is the competitiveness of the respective real estate markets. Despite Palo Alto's historic pricing—market performance this year is outpacing the frenzied pandemic-era marketplace—demand remains high. Year to date average days on market (DOM) is only 8, and 65% of homes are selling over initial list price. This trend is especially noticeable in high-demand neighborhoods like Old Palo Alto, Professorville, Ventura, and College Terrace—where proximity to top schools, Stanford University, and leading tech campuses remains a driving force.

East Palo Alto's year-to-date 15 days on the market isn't sluggish by any stretch—and for a market at its price point, it's highly competitive. In addition, 51% of homes are selling above asking, which signals increased buyer demand and a growing sense of urgency among those looking for an affordable foothold in the heart of the Peninsula.

While Palo Alto homes may draw offers from international buyers and venture-backed entrepreneurs, East Palo Alto's buyer pool increasingly includes Bay Area professionals seeking convenience and relative affordability within striking distance of major job centers, and investors seeking excellent ROI opportunities.

The pricing differences between the two cities are also reflective of the very different lifestyles each provides. Situated in Santa Clara County, Palo Alto is a globally recognized hub of wealth and innovation. It's home to billion-dollar startups, top-ranked public schools, and a well-funded civic infrastructure. Residents are typically high-income earners, many with advanced degrees, and a large proportion are involved in the tech or academic sectors.

East Palo Alto, by contrast, is a historically working-class city with a higher share of renters and a more diverse population. In recent years, infrastructure improvements, including new parks and schools and new mixed-use developments, have begun to reshape East Palo Alto, helping to fuel the year-over-year price gains in its real estate market.

In the short term, Palo Alto's prestige, exclusivity, and irreplaceable location ensure it will retain its place as a marquee real estate destination. Yet the rising demand in East Palo Alto, combined with its central Peninsula location—you can reach Meta Headquarters and Alphabet's Googleplex in less than 10 minutes—cultural vibrancy, and comparative affordability suggest that more buyers are beginning to see its long-term value.

Developers, too, are eyeing East Palo Alto. Projects such as mixed-income housing and tech-adjacent office space have been approved or are in the pipeline, signaling a slow but steady transformation of the city's economic base. That interest, paired with already tight housing inventory across the Peninsula, may continue to place upward pressure on prices over the next several years.

While the year-to-date $3.9 million median price point remains the benchmark for a home in Palo Alto, the $1.1 million median in East Palo Alto paints a compelling contrast—and opportunity. Both cities share a location that's hard to beat, with access to major freeways, Caltrain, tech employers, and regional parks. But they tell different stories in terms of pricing dynamics, buyer psychology, and long-term growth trajectories.

Palo Alto may be the established titan of Silicon Valley luxury, but East Palo Alto is rapidly becoming a market to watch. For buyers who value proximity, community transformation, and long-term potential, East Palo Alto may offer the best of both worlds—especially in a region where affordability is increasingly rare.

If you're interested in learning more about the purchase of a Palo Alto home, investment opportunities, or you're seeking to list a residence for a lucrative sale, contact Kathleen Pasin today to discuss the next steps in your Palo Alto real estate journey.