Can't afford an average home in S.F.? Try a mansion in Sacramento instead
A mid-priced home in San Francisco and San Mateo County costs nearly as much as a luxury home in the Sacramento area.
It's not just that homes in the San Francisco metro area are far more expensive than they are in the Sacramento region — though they certainly are. The estimated price of a mid-tier home that sold in the San Francisco area from March to May was nearly $1.5 million, according to online real estate brokerage Redfin, almost three times the typical $589,000 price tag in the Sacramento area.
But the price gap between a 'normal' home (one in the middle third of values) and a mansion (in the top 5%) is also greater in the Bay Area than it is in the Sacramento region. A top-tier home in the San Francisco metro area, defined in Redfin's data as the city and San Mateo County, cost about $6.2 million, more than four times the price of a mid-tier home.
In the Sacramento metro area, a sprawling region that stretches to Lake Tahoe, a luxury home costs less than $1.7 million, less than three times the price of a mid-tier home.
The most expensive metro areas don't necessarily have the largest gaps between luxury homes and mid-tier homes. Florida's West Palm Beach and Miami metro areas have relatively moderate prices for mid-tier homes, at just above $500,000. But luxury homes in those metros can cost about eight times as much as a non-luxury home.
The Sacramento metro area, on the other hand, has the second-lowest gap, with the Portland, Ore., area having the absolute lowest ratio.
Cheryl Dibachi, a Roseville-based luxury home broker associate with Compass who moved from the Bay Area in 2005, said she regularly receives inquiries from Bay Area homebuyers who realize they can get much more space for their money further inland. She herself more than doubled her square footage for roughly the same amount of money once she moved to the Sacramento area, she said.
'If you want a luxury property but can't spend the $20 million-plus, there are great opportunities here, and you still have the proximity to the Bay Area,' Dibachi said.
Additionally, the luxury market is relatively new to the Sacramento area, Dibachi said, with higher-end properties mostly being homes rebuilt after 2000, around when the region saw a jump in housing demand. That new demand may have partially stemmed from out-migration of relatively well-off people from the Bay Area, which has a longer history of mansions with eye-popping prices.
The difference in the price gap likely reflects the two regions' levels of income inequality. The average income of the top 20% of earners in San Francisco was 28 times what the bottom 20% made, according to U.S. Census Bureau data from 2023. The same ratio was just 14 in Sacramento and Placer counties.
But the Sacramento region has its own affordability challenges. Researchers have found that the cost of home insurance is far outpacing homeowner income. And Dibachi also said home prices are also starting to rise as more people flock to the area.
'Over the last three years, I've seen a pretty dramatic jump in what people are willing to pay,' she said. 'And it's really, I think, mainly because they can't get the product anywhere else.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hill
11 minutes ago
- The Hill
Greenland has a message for the rest of the world: Come visit
NUUK, Greenland (AP) — Greenland has a message for the rest of the world: We're waiting for you. 'Come visit Greenland,' said Nukartaa Andreassen, who works for a water taxi company in the capital city, Nuuk. 'Learn about it, learn about us. We love to have you. We love to tell our stories and our culture.' The mineral-rich Arctic island is open for tourism. Whale-watching tours, excursions to the iconic puffin island and guided charters through remote settlements are just the beginning of what Greenland has to offer visitors. Locals want to show what makes the island unique beyond a recent diplomatic dustup with U.S. President Donald Trump. 'Our goal and mission is to present and be the ambassadors of Greenland,' said Casper Frank Møller, the chief executive of Nuuk-based tour guide company Raw Arctic, 'and to show what beauty you can experience while you're here.' The tourism industry is expected to see a boom this year following the launch of a new route between Nuuk and Newark, New Jersey. The inaugural flight June 14 was the first direct travel from the U.S. to Greenland by an American airline. Before the direct flight, air passengers departing from the U.S. needed a layover in Iceland or Denmark to reach Greenland. The change benefited travelers like Doug Jenzen, an American tourist who was on the United Airlines plane from New Jersey. 'I came with the purpose of exploring some of the natural sites around the world's largest island, hoping to support things like ecotourism and sustainable travel while supporting the local economy,' Jenzen said. Cruise ships can already dock on the island but they bring less money to businesses catering to tourists because passengers sleep and usually eat on board. Some 150,000 tourists visited Greenland in 2024, according to Naaja Nathanielsen, Greenland's business minister. 'We really want to grow the tourism sector. It's a very good fit for many in Greenland,' Nathanielsen added. 'Tourism is about good vibes. It's about sharing culture, sharing history. It's about storytelling. And as Inuit, that's very much part of our heritage.' Greenland gained worldwide attention when Trump earlier this year announced he wanted to take control of the semiautonomous Danish territory, through a purchase or possibly by force. Denmark, a NATO ally, and Greenland have said the island is not for sale and condemned reports of the U.S. gathering intelligence there. Despite the diplomatic tension, Frank Møller of Raw Arctic sees an upside. 'It has kind of put Greenland on the world map. And it's definitely a situation that Raw Arctic has used to our advantage,' he said. Still, beefing up the tourism industry should happen at a pace that prioritizes the voices and comfort levels of the roughly 56,000 people on the island, he added. Andreassen, of Nuuk Water Taxi, agreed. 'It's very important for me to tell my own story. Because I always feel like when I meet new people, I always introduce a whole Greenland,' she said. 'It's important for me to show our own culture, our own nature. Not by television, not by other people from other countries.' In June, Pinar Saatci, a 59-year-old Turkish tourist, saw several whales breach the ocean surface during a boat tour. 'It's very exciting to be here, at the other part of the world, so far away from home,' she said. 'It's a very exciting and unforgettable moment.' Risskov Rejser has visited Greenland several times through her travel company for Danish travelers. But she is worried about the impact of a tourist invasion. 'For me, the worst thing would be if mass tourism starts and people come here, and sort of look upon the Greenland people as if they were a living museum,' she said. 'It has to be done in a respectful way and you have to consider what the consequences are.' ___ Stefanie Dazio in Berlin contributed to this report.
Hamilton Spectator
28 minutes ago
- Hamilton Spectator
Greenland has a message for the rest of the world: Come visit
NUUK, Greenland (AP) — Greenland has a message for the rest of the world: We're waiting for you. 'Come visit Greenland,' said Nukartaa Andreassen, who works for a water taxi company in the capital city, Nuuk. 'Learn about it, learn about us. We love to have you. We love to tell our stories and our culture.' The mineral-rich Arctic island is open for tourism. Whale-watching tours, excursions to the iconic puffin island and guided charters through remote settlements are just the beginning of what Greenland has to offer visitors. Locals want to show what makes the island unique beyond a recent diplomatic dustup with U.S. President Donald Trump . 'Our goal and mission is to present and be the ambassadors of Greenland,' said Casper Frank Møller, the chief executive of Nuuk-based tour guide company Raw Arctic, 'and to show what beauty you can experience while you're here.' The tourism industry is expected to see a boom this year following the launch of a new route between Nuuk and Newark, New Jersey . The inaugural flight June 14 was the first direct travel from the U.S. to Greenland by an American airline. Traveling to Greenland Before the direct flight, air passengers departing from the U.S. needed a layover in Iceland or Denmark to reach Greenland. The change benefited travelers like Doug Jenzen, an American tourist who was on the United Airlines plane from New Jersey. 'I came with the purpose of exploring some of the natural sites around the world's largest island, hoping to support things like ecotourism and sustainable travel while supporting the local economy,' Jenzen said. Cruise ships can already dock on the island but they bring less money to businesses catering to tourists because passengers sleep and usually eat on board. Some 150,000 tourists visited Greenland in 2024, according to Naaja Nathanielsen, Greenland's business minister. 'We really want to grow the tourism sector. It's a very good fit for many in Greenland,' Nathanielsen added. 'Tourism is about good vibes. It's about sharing culture, sharing history. It's about storytelling. And as Inuit, that's very much part of our heritage.' The Trump effect Greenland gained worldwide attention when Trump earlier this year announced he wanted to take control of the semiautonomous Danish territory, through a purchase or possibly by force . Denmark, a NATO ally, and Greenland have said the island is not for sale and condemned reports of the U.S. gathering intelligence there. Despite the diplomatic tension, Frank Møller of Raw Arctic sees an upside. 'It has kind of put Greenland on the world map. And it's definitely a situation that Raw Arctic has used to our advantage,' he said. Still, beefing up the tourism industry should happen at a pace that prioritizes the voices and comfort levels of the roughly 56,000 people on the island, he added. Andreassen, of Nuuk Water Taxi, agreed. 'It's very important for me to tell my own story. Because I always feel like when I meet new people, I always introduce a whole Greenland,' she said. 'It's important for me to show our own culture, our own nature. Not by television, not by other people from other countries.' 'Unforgettable moment' In June, Pinar Saatci, a 59-year-old Turkish tourist, saw several whales breach the ocean surface during a boat tour. 'It's very exciting to be here, at the other part of the world, so far away from home,' she said. 'It's a very exciting and unforgettable moment.' Risskov Rejser has visited Greenland several times through her travel company for Danish travelers. But she is worried about the impact of a tourist invasion. 'For me, the worst thing would be if mass tourism starts and people come here, and sort of look upon the Greenland people as if they were a living museum,' she said. 'It has to be done in a respectful way and you have to consider what the consequences are.' ___ Stefanie Dazio in Berlin contributed to this report.
San Francisco Chronicle
31 minutes ago
- San Francisco Chronicle
Greenland has a message for the rest of the world: Come visit
NUUK, Greenland (AP) — Greenland has a message for the rest of the world: We're waiting for you. 'Come visit Greenland,' said Nukartaa Andreassen, who works for a water taxi company in the capital city, Nuuk. 'Learn about it, learn about us. We love to have you. We love to tell our stories and our culture.' The mineral-rich Arctic island is open for tourism. Whale-watching tours, excursions to the iconic puffin island and guided charters through remote settlements are just the beginning of what Greenland has to offer visitors. Locals want to show what makes the island unique beyond a recent diplomatic dustup with U.S. President Donald Trump. 'Our goal and mission is to present and be the ambassadors of Greenland,' said Casper Frank Møller, the chief executive of Nuuk-based tour guide company Raw Arctic, 'and to show what beauty you can experience while you're here.' The tourism industry is expected to see a boom this year following the launch of a new route between Nuuk and Newark, New Jersey. The inaugural flight June 14 was the first direct travel from the U.S. to Greenland by an American airline. Traveling to Greenland Before the direct flight, air passengers departing from the U.S. needed a layover in Iceland or Denmark to reach Greenland. The change benefited travelers like Doug Jenzen, an American tourist who was on the United Airlines plane from New Jersey. 'I came with the purpose of exploring some of the natural sites around the world's largest island, hoping to support things like ecotourism and sustainable travel while supporting the local economy,' Jenzen said. Cruise ships can already dock on the island but they bring less money to businesses catering to tourists because passengers sleep and usually eat on board. Some 150,000 tourists visited Greenland in 2024, according to Naaja Nathanielsen, Greenland's business minister. 'We really want to grow the tourism sector. It's a very good fit for many in Greenland,' Nathanielsen added. 'Tourism is about good vibes. It's about sharing culture, sharing history. It's about storytelling. And as Inuit, that's very much part of our heritage.' The Trump effect Greenland gained worldwide attention when Trump earlier this year announced he wanted to take control of the semiautonomous Danish territory, through a purchase or possibly by force. Denmark, a NATO ally, and Greenland have said the island is not for sale and condemned reports of the U.S. gathering intelligence there. Despite the diplomatic tension, Frank Møller of Raw Arctic sees an upside. 'It has kind of put Greenland on the world map. And it's definitely a situation that Raw Arctic has used to our advantage,' he said. Still, beefing up the tourism industry should happen at a pace that prioritizes the voices and comfort levels of the roughly 56,000 people on the island, he added. Andreassen, of Nuuk Water Taxi, agreed. 'It's very important for me to tell my own story. Because I always feel like when I meet new people, I always introduce a whole Greenland,' she said. 'It's important for me to show our own culture, our own nature. Not by television, not by other people from other countries." 'Unforgettable moment' In June, Pinar Saatci, a 59-year-old Turkish tourist, saw several whales breach the ocean surface during a boat tour. 'It's very exciting to be here, at the other part of the world, so far away from home," she said. 'It's a very exciting and unforgettable moment.' Risskov Rejser has visited Greenland several times through her travel company for Danish travelers. But she is worried about the impact of a tourist invasion. 'For me, the worst thing would be if mass tourism starts and people come here, and sort of look upon the Greenland people as if they were a living museum," she said. "It has to be done in a respectful way and you have to consider what the consequences are.' ___ Stefanie Dazio in Berlin contributed to this report.
