Photo: pedrik · CC BY 2.0Even on the area’s higher pay, Berkeley costs more to live in than 89% of U.S. towns
It ranks #318 of 846 in California and #251 of 400 U.S. cities over 100,000 for affordability. Up 8% in a year, 89% above the California typical home.
Census 2020–24 home values, rents, tax bills and cost burden, measured against the median household income of the San Francisco-Oakland-Fremont, CA metro area ($136K). How TownRatings grades cost of living
The grade measures what housing costs against what households in the area earn. Berkeley’s area earns well above the typical U.S. town ($136K against $74K), but homes, rent and taxes here run higher still. Owners keep up better than renters: 29% of owners pay 30% or more of income for housing (typical U.S. town: 20%), against 56% of renters.
In dollars
- $1.4Mtypical home, 89% above the California typical homeZillow, September 2026
- $2,960a month for a two-bedroom, utilities includedHUD Fair Market Rent, 2026
In paychecks the grade
- 10.4 yrsof area income buys the typical home; the typical U.S. town: 3.3$136K, San Francisco-area income
- 19%of area income goes to the median rent; the typical U.S. town: 18%Census 2020–24
- 56%of renters pay 30%+ of income for housing; across California: 55%Census 2020–24
- 29%of owners do; the typical U.S. town: 20%Census 2020–24
Housing in Berkeley, in brief
About three in four homes sell above asking
In September, 76% of the homes that sold went for more than the asking price and 41% went under contract within two weeks. There were about 1.8 months of homes for sale at that pace, against 3.6 across California: 112 listings for 62 sales that month. Expect competition on well-priced homes. How fast homes sell ↓
Prices are 9% below their 2022 peak
The typical Berkeley home peaked at $1.59M in May 2022 and is worth about $1.44M now. Across California, values are only slightly off their high. Over five years, Berkeley is down 0.1%. Price trend ↓
Homes haven’t kept up with new residents
Between the 2010 and 2020 censuses, Berkeley gained 11,741 residents while 2,014 new homes were permitted: about 5.8 new residents per new home, against 2.7 across California. New homes ↓
Renting costs far less than owning
A two-bedroom rents for about $2,960 a month. Owning the typical Berkeley home, with 20% down at the calculator’s rate, runs about $8,400 with tax and insurance: 3 times as much. Can I afford it? ↓
Written from the data on this page. Home values are the Zillow Home Value Index, through September 2026; sales and supply are Redfin’s for September 2026; permits are Census figures through 2025 (2025 partly estimated); incomes, rents paid, taxes and ownership come from the Census American Community Survey.
What’s behind Berkeley’s grade
Measured against what households in the area earn, Berkeley is more affordable than 11% of U.S. towns, #318 of 846 in California. Home prices pull the grade down most; rent holds it up.
27% of residents are college students, whose low reported incomes push up the share paying 30%+ for housing, so the grade leaves that input out.
Values have lagged California: the typical Berkeley home is down 0.1% in five years, against 13.3% statewide (Zillow).
Down 0.1% in five years
Slower than California (13.3%).
Show as a table
| January | Berkeley | California |
|---|---|---|
| 2017 | $1,066,000 | $451,000 |
| 2018 | $1,187,000 | $499,000 |
| 2019 | $1,206,000 | $537,000 |
| 2020 | $1,246,000 | $548,000 |
| 2021 | $1,311,000 | $604,000 |
| 2022 | $1,465,000 | $700,000 |
| 2023 | $1,419,000 | $723,000 |
| 2024 | $1,392,000 | $754,000 |
| 2025 | $1,402,000 | $778,000 |
| 2026 | $1,369,000 | $763,000 |
| September 2026 | $1,443,000 | $762,000 |
A typical Berkeley home worth $1.05M in October 2016 is worth about $1.44M today.
Zillow Home Value Index: the typical value of all homes (middle third), smoothed and seasonally adjusted, through September 2026.
A strong seller's market
Homes are selling faster than new ones are listed: less than two months of supply. Well-priced homes can draw several offers.
Under ~4 months of supply favors sellers; over ~6 favors buyers.
Redfin Data Center, all residential sales, September 2026.
A typical home costs 10.4 years of area income
The calculator starts from the area income the grade uses. Switch to Berkeley’s own median, or type yours.
That’s $898K short of a typical Berkeley home.
A two-bedroom rents for about $2,960 a month here, $5,440 less than owning.
An estimate, not a loan offer: payments of up to 28% of income, a 30-year fixed loan, the California typical property tax (0.70% of value a year, from the Census) and insurance of about 0.35%. Mortgage insurance, HOA fees and other debts aren’t included.
A two-bedroom rents for about $2,960
Renters already here pay a median of $2,133, so moving in tends to cost more than staying put.
Fair Market Rent a month, utilities included
U.S. Department of Housing and Urban Development, Fair Market Rents by ZIP code (Oakland-Fremont, CA HUD Metro FMR Area): the 40th-percentile rent plus utilities for a standard unit. Median rent and renters: U.S. Census Bureau, American Community Survey.
364 new homes permitted in 2025
Builders were permitted 364 new homes in Berkeley in 2025: 106 single-family houses and 258 in buildings with two or more homes, worth about $76.9 million to build. That's 3 per 1,000 residents, about the pace of California as a whole. Over the past 10 years, Berkeley has permitted 3,683 homes in all.
Between the 2010 and 2020 censuses, Berkeley gained 11,741 residents while 2,014 new homes were permitted: about 5.8 new residents per new home. Population grew faster than building, so existing homes filled up: a sign of tight supply. Across California: 2.7 new residents per new home.
Every year as a table
| Year | New homes | Single-family | 2+ per building | Value |
|---|---|---|---|---|
| 2026 (Jan–Aug) | 267 | 68 | 199 | $55.2 million |
| 2025 | 364 | 106 | 258 | $76.9 million |
| 2024 | 307 | 98 | 209 | $61.8 million |
| 2023 | 433 | 89 | 344 | $91.7 million |
| 2022 | 795 | 79 | 716 | $115.9 million |
| 2021 | 316 | 88 | 228 | $56.6 million |
| 2020 | 339 | 82 | 257 | $60.6 million |
| 2019 | 266 | 80 | 186 | $59.8 million |
| 2018 | 195 | 66 | 129 | $35.8 million |
| 2017 | 311 | 36 | 275 | $49.8 million |
| 2016 | 357 | 16 | 341 | $55.5 million |
| 2015 | 304 | 12 | 292 | $52 million |
| 2014 | 364 | 20 | 344 | $39.8 million |
| 2013 | 62 | 17 | 45 | $9.7 million |
| 2012 | 95 | 1 | 94 | $9.3 million |
| 2011 | 42 | 4 | 38 | $1.6 million |
| 2010 | 18 | 2 | 16 | $3.4 million |
| 2009 | 178 | 8 | 170 | $35.7 million |
| 2008 | 406 | 15 | 391 | $37.3 million |
| 2007 | 74 | 14 | 60 | $10.9 million |
| 2006 | 141 | 9 | 132 | $16.5 million |
| 2005 | 195 | 13 | 182 | $23 million |
| 2004 | 332 | 20 | 312 | $40.1 million |
| 2003 | 286 | 34 | 252 | $25.5 million |
| 2002 | 41 | 13 | 28 | $6.6 million |
| 2001 | 98 | 19 | 79 | $6.8 million |
| 2000 | 47 | 10 | 37 | $7.1 million |
Berkeley's permit office reported 9 of 12 months in 2025; the Census estimated the rest.
Homes authorized by building permits, counted in the year the permit was issued. U.S. Census Bureau, Building Permits Survey.
Property tax runs above the California norm
The median bill is $10,000+ (California: $5,124), 0.71%+ of a home’s value a year, against 0.70% statewide.
Census American Community Survey 2020–24: the median real-estate tax bill homeowners report, and that bill ÷ the median home value. Bills include town, school and county taxes. The Census reports bills over $10,000 only as “$10,000+”.
Berkeley vs. its neighbors
Of the 6 towns here with a Zillow value, Berkeley has the 5th-lowest.
Cost next door · one source per column
| Town | Cost | Typical home Zillow, September 2026 | Median value Census 2020–24 | Tax rate bill ÷ value | 2-bed rent HUD 2026 |
|---|---|---|---|---|---|
| Berkeley | D | $1.4M | $1.4M | 0.71%+ | $2,960 |
| Oakland | D | $711K | $930K | 0.92% | $2,630 |
| Albany | D | $1.2M | $1.2M | 0.83%+ | $3,050 |
| Kensington | D | $1.5M | $1.5M | 0.65%+ | $3,240 |
| Emeryville | D | $429K | $605K | 1.03% | $3,250 |
| San Francisco | D− | $1.4M | $1.4M | 0.71% | $3,450 |
“+”: the Census reports the tax bill only as $10,000 or more, so the rate is at least that.
Questions about the cost of living in Berkeley
Is Berkeley expensive to live in?
Measured against what households in the area earn, Berkeley costs more than 89% of U.S. towns: a D for cost of living, #318 of 846 in California. The typical home costs 10.4 years of the median household income of the San Francisco-Oakland-Fremont, CA metro area ($136K).
How much does a house cost in Berkeley?
About $1.4M, Zillow’s typical value for September 2026, up 8.0% in a year. The California typical home is $762K.
What salary do you need to live in Berkeley?
To buy the typical home with 20% down at 6.3%, about $360,000 a year, keeping the payment (about $8,400 a month with tax and insurance) at 28% of income. To rent a two-bedroom at 30% of income, about $118,000.
How much is rent in Berkeley?
HUD puts a two-bedroom at about $2,960 a month with utilities, the going rate for someone moving in. Renters already here pay a median of $2,133 (Census 2020–24).
What are property taxes in Berkeley?
The median bill is $10,000+ a year, 0.71% of the median home value (California: $5,124, 0.70%), from the Census 2020–24.
Are home prices in Berkeley going up?
Yes: up 8.0% in the past year and -0.1% in five years, against 13.3% across California (Zillow).
Neighbors talk housing
What Berkeley buyers, sellers and renters are saying.
Home values: Zillow Home Value Index (ZHVI), Zillow Research, September 2026. Sales, days on market and supply: Redfin Data Center, September 2026. Income, ownership, taxes and rent: U.S. Census Bureau, American Community Survey. New homes: U.S. Census Bureau, Building Permits Survey. Fair Market Rents: U.S. Department of Housing and Urban Development. The calculator is an estimate, not a loan offer. Regional price levels: BEA; electricity: EIA. How TownRatings grades cost of living.