East Bay Housing Market Forecast for 2025

The eastern part of the San Francisco Bay Area (locally known as “the East Bay”) contains one of the most competitive real estate markets in California. Tight inventory conditions combined with steady demand from buyers lead to quick sales and high home prices.

But a lot has changed over the past couple of years. A recent report showed that inventory levels have increased within Alameda and Contra Costa counties. This could benefit home buyers in 2025.

Home prices, meanwhile, have begun to climb again in both of these counties. So a sense of urgency might be warranted, for those who are planning to make a purchase.

Here are the latest trends and predictions for the East Bay real estate market extending into 2025.

From Red-Hot to Cool to Warm Again

Like most housing markets across the United States, the eastern part of the San Francisco Bay Area experienced a surge in home-buying demand during the COVID years. This was partly fueled by people moving out of the city of San Francisco and into the surrounding communities.

As a result of this trend, the East Bay real estate market accelerated and heated up like never before. We experienced unprecedented price growth, along with intense competition among local home buyers. You probably know this much already.

You might also know that the real estate market cooled down considerably during 2022, when mortgage rates more than doubled.

In Alameda and Contra Costa counties, the median number of “days on market” has declined over the past couple of years. This means that properties are selling faster, partly due to strong demand from buyers.

East Bay Housing Inventory Increased in 2024

Here’s some good news for East Bay home buyers. Inventory levels have increased over the past couple of years. This means there are more homes on the market these days when compared to a year ago.

During the housing market frenzy of 2020 – 2022, the East Bay counties of Alameda and Contra Costa both had less than a 1-month supply of homes for sale. But that number has improved steadily since then.

According to an October 2024 report from the California Association of Realtors, the East Bay had about a 2.8-month supply of homes on the market. That’s not an ideal level of supply, but it’s a lot better than where we were two years ago.

Home Prices Starting to Rise Again

East Bay home price trends over the past four years can be summed up as follows:

• Prices rose sharply during the pandemic years.
• They hit an all-time high during the summer of 2022.
• Prices declined during the second half of 2022 and into 2023.
• They rose gradually for most of 2024.

Now, as we approach the start of 2025, the East Bay real estate market appears to be on track for continued price growth.

But don’t expect home values to skyrocket again anytime soon, as they did during the pandemic. The most likely forecast for 2025 is that the East Bay housing market will experience slow-but-steady price growth.

When this report was last updated, the median home price for Alameda County was around $1.1 million, while the median for Contra Costa County was $812,000.

What It All Means for East Bay Buyers

Anyone who is planning to buy a home in the East Bay counties of Alameda or Contra Costa should pay close attention to these trends. They’ll be influencing the housing market in 2025 as well.

So let’s wrap up with a summary of key takeaways:

• Inventory is up: The East Bay has seen a rise in available homes, with supply increasing from less than a 1-month supply to about 2.8 months’ worth. This benefits buyers, though the market still favors sellers overall.
• Market is reheating: The East Bay market surged during COVID, cooled significantly in 2022, but has begun warming up again.
• Cooling prices: Modest price growth is expected in 2025, with some areas possibly experiencing flat prices or even slight declines.
• Kinder to buyers: Although the East Bay will remain a seller’s market, increased inventory will make it slightly more favorable for buyers.

What Is The “East Bay” Exactly?

In short, the East Bay comprises the cities and counties that lie to the east of San Francisco proper, across the San Francisco Bay.

Specifically, the term “East Bay” refers to the eastern region of the San Francisco Bay Area, encompassing both Alameda and Contra Costa counties. It’s a sprawling area with a diverse geography, ranging from the urban waterfront cities of Oakland and Berkeley to the rolling hills and inland valleys of Walnut Creek and Pleasanton.

This populous region, home to roughly 2.5 million residents, offers a unique blend of cityscapes, natural beauty, and suburban charm.

Major Cities in the Area

Some of California’s most famous cities are located in the East Bay region, including Berkeley and Oakland. Here’s a home buyer’s guide to some of the largest and most populous cities in the area.

Alameda: An island city of about 80,000 residents that offers a relaxed atmosphere, beautiful Victorian homes, and excellent schools. Alameda is a good choice for home buyers seeking a family-friendly environment. It offers a slower pace of life compared to some of the surrounding urban centers.

Berkeley: An East Bay city known for its progressive vibe. Berkeley’s neighborhoods are prized for their architectural diversity. Here you’ll find tree-lined streets full of well-preserved Victorian homes dating back to the late 19th century. Berkeley also has some of the highest home prices in the East Bay region.

Oakland: Another major East Bay city, Oakland offers a thriving arts scene, trendy restaurants, and historic architecture. Downtown Oakland has undergone a renaissance in recent years, an effort that continues to this day. It involves the development of sleek, modern condominiums and loft-style apartments amidst historic buildings and vibrant street art.

Richmond: An evolving East Bay city with an industrial history. The Point Richmond neighborhood (or simply “The Point”) has a scenic waterfront with walking trails. Richmond’s core offers a mix of historic buildings and new developments. The median price point for the Richmond real estate market was around $783,000 at the time of publication.

Walnut Creek & Concord: These East Bay suburbs offer highly rated schools, spacious houses, and a quieter pace of life. This makes them ideal for families seeking a bit more breathing room by Bay Area standards. Concord is home to Six Flags Hurricane Harbor Concord, a popular water park on hot summer days.

Major Employers in the Area

As part of the greater San Francisco Bay Area, the East Bay is a highly developed region with many large employers and economic ventures. In addition to the county governments of Alameda and Contra Costa, the largest employers include:

• University of California, Berkeley, with approximately 20,000 employees
• AT&T Inc. with approximately 11,000 employees
• The U.S. Postal Service
• Lawrence Livermore National Laboratory
• Chevron Corp. (world headquarters in San Ramon)
• Safeway (world headquarters in Pleasanton)
• Bank of America
• PG&E
• Kaiser Permanente (US headquarters in Oakland)