Palo Alto, CA housing market
Typical home value
$3.59M
▲ 5.9% 1 yr
Typical rent
$4,558/mo
▲ 10.3% 1 yr
Gross rent yield
1.5%
U.S. 6.3%
5-year home value change
+17%
U.S. +20%
Key takeaways
- 1The typical home in Palo Alto is worth $3,592,240, up 5.9% over the past year and up 17% over five years.
- 2Typical rent is $4,558 a month (+10.3% YoY), a gross rent yield of 1.5% (below the San Jose, CA metro's 3.0%).
- 3With 20% down at 7.32%, principal and interest on the typical home is about $19,741/mo, $15,183 more than typical rent.
- 4Zillow forecasts the San Jose, CA metro's home values to change +1.9% over the next 12 months.
Market temperature (San Jose, CA metro)
Seller's market
Buyer'sNeutralSeller's
Zillow Market Heat Index: 58/100, #49 hottest of 546 metros. Below 44 favors buyers; above 55 favors sellers.
Home values and rent
Source: Zillow Research (ZHVI, ZORI and market activity data).
How Palo Alto compares
| Measure | Palo Alto | San Jose, CA metro | United States |
|---|---|---|---|
| Typical home value | $3,592,240 | $1,523,615 | $366,157 |
| Home value, 1-yr change | +5.9% | +0.2% | +1.2% |
| Typical rent | $4,558 | $3,812 | $1,932 |
| Rent, 1-yr change | +10.3% | +8.3% | +2.7% |
| Gross rent yield | 1.5% | 3.0% | 6.3% |
| Price-to-rent ratio | 65.7 | 33.3 | 15.8 |
| Mortgage P&I, typical home | $19,741 | $8,373 | $2,012 |
Run the numbers
Rental property calculator
Cash flow on a typical Palo Alto rental, pre-filled.
Rent vs buy in Palo Alto
Which costs less over the years you'll stay.
Mortgage calculator
Monthly payment on a $3.59M home.
Landlord in California? See California deposit, late fee and notice rules.
Other cities in the San Jose, CA metro
San Jose, CA
$1.35M home$3,582 rent
▼ 0.5% 1 yr
Sunnyvale, CA
$2.01M home$3,972 rent
▲ 1.0% 1 yr
Santa Clara, CA
$1.64M home$3,958 rent
▲ 0.5% 1 yr
Mountain View, CA
$1.93M home$4,535 rent
▲ 2.5% 1 yr
Milpitas, CA
$1.39M home$3,614 rent
▼ 1.2% 1 yr
Gilroy, CA
$1.04M home$3,099 rent
▲ 1.0% 1 yr
Cupertino, CA
$2.96M home$4,307 rent
▲ 2.9% 1 yr
Hollister, CA
$757K home$2,889 rent
▲ 0.1% 1 yr
City figures are Zillow's typical home value (ZHVI) and observed rent (ZORI). Gross yield is before expenses. Data refreshed Oct 26, 2026.