Oakland Housing Market Forecast for 2025: Will Home Prices Rebound?

Home prices in Oakland, California have declined over the past couple of years, following the unprecedented growth seen during the pandemic. But some forecasts suggest the Oakland real estate market could experience a rebound in 2025.

Oakland is a mostly balanced real estate market in 2024. That means it doesn’t strongly favor sellers or buyers. But it’s more “buyer-friendly” these days in the sense that inventory has risen and prices have dropped.

We expect these conditions to extend into 2025 as well, with the possibility of a price rebound later next year.

Hindsight: Home Price Trends Through 2024

In many ways, the Oakland housing market has displayed the same cyclical pattern as most major U.S. cities. House values skyrocketed from 2020 into 2021, reached an all-time record high in the summer of 2022, and declined thereafter.

Some markets experienced a more extreme version of this pattern, while other cities had a milder scenario. The Oakland real estate market falls somewhere in the middle of that spectrum.

The graph below shows the median home value for the city of Oakland, California going back eight years. It’s based on data provided by Zillow with explanatory notes from our own researcher.

Notice that the median home value for Oakland is almost back down to the pre-pandemic level. The overheated price growth that occurred from 2020 to 2023 has all but vanished, bringing the market back to something resembling normal.

This cooling trend will contribute to a more affordable — and more sustainable — Oakland housing market in 2025.

Housing Inventory Levels Have Improved

A recent report from the National Association of REALTORS® revealed some interesting trends for the Oakland real estate market that could affect buyers.

Among other things, their report showed that the Oakland area has experienced an increase in total housing market inventory over the past year.

Specifically, the October 2024 Realtor.com report showed that active real estate listings increased by around 27% over the previous 12 months. That means local home buyers have more properties to choose from now when compared to a year ago.

Forecast: The Oakland Housing Market in 2025

Researchers at Zillow recently predicted that the median home value for the San Francisco-Oakland-Hayward metropolitan area would decline by 3.5% from Sept 2024 to Sept 2025.

But this housing market forecast covers the entire Bay Area region and does not break Oakland out separately. The city of Oakland has some market fundamentals in its favor that other parts of the Bay Area lack, including a more stable population and the relative affordability mentioned earlier.

Considering the current supply and demand situation and historical patterns, it seems likely that home prices in Oakland will find a bottom during the first half of 2025 with a gradual rise thereafter.

Overall, home buyers should have an easier time finding and purchasing a home in 2025 compared to the past few years. There are three main reasons for this:

1. Home prices have declined, increasing affordability for buyers.
2. Inventory levels have risen, giving house hunters more options to choose from.
3. The market is moving at a slower pace, reducing urgency among buyers.

But if we’ve learned anything from the past few years, it’s that real estate trends often defy predictions and expectations. So take this Oakland market forecast for what it is — an educated guess.

Still a Competitive Real Estate Scene

According to a September 2024 report from the California Association of Realtors, home sales across Alameda County (including Oakland) declined by around 12% over the previous 12 months.

But these numbers don’t tell the full story.

The city of Oakland currently has a relatively low number of “days on market” compared to many other U.S. metros. The latest statistics suggest that Oakland is a fairly active real estate market, with a faster sales pace than the national average.

Inventory has a lot to do with this. While this housing market has gained inventory over the past year, it’s still falling short of buyer demand.

Planning to Buy a Home in Oakland in 2025?

Those who are planning to buy a home in the Oakland area during 2025 should be prepared to hit the ground running. While the U.S. real estate market has cooled over the past couple of years, the situation in Oakland will likely remain competitive over the coming months.

Our advice for home buyers is to spend some time researching the market, before jumping into it. Take a look at recent sales prices and other market indicators. You can find most of this information online for free.

It’s also wise to have your financing arranged before you enter the real estate scene. That way, you’ll be ready to make an offer swiftly when the right property comes along.

Disclaimer: This report contains predictions issued by third parties not associated with our company. Housing forecasts are the equivalent of an informed opinion and therefore far from certain.

Oakland, California: A City Overview

Oakland is a coastal city located in the East Bay portion of the San Francisco Bay Area. It’s bordered by the San Francisco Bay to the west, Berkeley to the north, and Alameda to the south.

Oakland’s history dates back to the early 19th century when it was established as a port town. The city grew rapidly during the Gold Rush era and later became a major industrial center.

Population-wise, Oakland is currently the largest city in Alameda County and the eighth largest in California. As of the last census, the city had a population of around 440,000 residents.

Notable attractions include:

• Lake Merritt: An urban tidal lagoon and a popular recreational area, surrounded by parks and walking paths.
• The Oakland Zoo: Home to over 850 native and exotic animals. The zoo is known for its expansive enclosures and focus on conservation.
• Jack London Square: A waterfront area with dining, entertainment, and ferry service to San Francisco.
• Oakland Museum of California: A major cultural institution showcasing California’s history, art, and natural sciences.
• The Fox Theater: An iconic music venue in the heart of Uptown Oakland, the historic Fox Theater dates back to the 1920s and was restored in 2009.
• Redwood Regional Park: A scenic park with extensive hiking trails through towering redwoods.

What Home Buyers Should Know

Real estate conditions can change over time. But generally speaking, the Oakland housing market tends to be highly competitive due to limited inventory and steady demand.

As of late 2024, the median home price within the city of Oakland was around $750,000. The median for the broader San Francisco Bay Area was $1,144,000, while the median for California as a whole was around $773,000.

Oakland’s overall cost of living is generally higher than the national average as well. Home buyers relocating from elsewhere might encounter higher costs than they’re used to.

Notable Neighborhoods and Communities

Oakland offers a wide range of neighborhoods and communities, each with its own unique character. Here are some of the most well-known neighborhoods in the city.

• Rockridge: A historic neighborhood known for its tree-lined streets, upscale homes, and proximity to shops and restaurants.
• Lakeshore: A waterfront neighborhood with stunning views of Lake Merritt. It offers a mix of residential and commercial properties.
• Temescal: A trendy neighborhood with a vibrant arts scene, eclectic shops, and diverse dining options.
• Fruitvale: A culturally rich neighborhood with a strong Latino and Mexican-American community. It’s known for its murals, markets, and traditional cuisine.
• Chinatown: A historic neighborhood with a thriving Chinese community. It offers authentic Chinese restaurants, shops, and cultural attractions.
• Jack London Square: A waterfront district with a mix of residential, commercial, and entertainment venues. It’s a popular destination for dining, shopping, and nightlife.
• Grand Lake: A charming neighborhood with a historic theater, independent shops, and a variety of restaurants.
• Montclair: A residential neighborhood with tree-lined streets, large homes, and good schools.
• Uptown Oakland: A vibrant neighborhood with a diverse mix of businesses, including restaurants, bars, and shops.