With median prices near $1 million, both builders and buyers are looking further out in The Bay Area, to as far as Sacramento, reports The Wall Street Journal's Chris Kirkham.
Over the past year, the East Bay, which stretches 10 to 60 miles to the east of San Francisco and Silicon Valley, is tied for the fastest growth in new-home developments among major U.S. markets. Sacramento came in at number three, according to figures from John Burns Real Estate Consulting.
Kirkham points to Trumark Cos. as an example of this trend.
Coming out of the recession, the company largely focused on condominium projects and land deals in the core San Francisco and Silicon Valley markets. But in the last three years they have begun work on two larger single-family home developments on the periphery—one 40 miles east of San Francisco, the other 80 miles east.