California's Priciest Homes Shift Away From Silicon Valley

Southern California cities like Newport Beach now dominate the state's most valuable real estate markets.

Mar. 12, 2026 at 8:20pm

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A new analysis shows a dramatic shift in California's most expensive housing markets, with Southern California cities like Newport Beach now claiming seven of the state's top 10 priciest ZIP codes. This is a major reversal from two decades ago when Northern California's tech hubs dominated the list. The rise of SoCal real estate has been fueled by an influx of affluent buyers relocating from Los Angeles, seeking a family-friendly coastal lifestyle and better schools. However, the soaring home values have also raised concerns about affordability, even for longtime residents.

Why it matters

This shift in California's real estate power center underscores how the state's wealth patterns have evolved, as lifestyle appeal, pandemic migration, and housing scarcity reshape where the ultra-rich choose to live. It also highlights the growing affordability challenges facing even affluent coastal communities as home prices continue to skyrocket.

The details

The analysis by the Los Angeles Times found that in 2001, seven of California's 10 most expensive ZIP codes were in the Bay Area, including Atherton, Portola Valley, Palo Alto and Tiburon. But by 2026, that map has flipped, with seven of the top 10 priciest ZIP codes now located in Southern California. Leading the charge is Newport Beach in Orange County, which now claims three spots among the state's top 10 most valuable housing markets. The coastal enclave has seen an influx of affluent buyers relocating from Los Angeles, drawn to its family-friendly neighborhoods, quality schools, and beachside lifestyle. Demand has been particularly fierce in Newport's exclusive waterfront enclaves, where homes often come with private docks, but limited inventory has driven valuations even higher.

  • In 2001, seven of California's 10 most expensive ZIP codes were in the Bay Area.
  • By 2026, seven of the state's top 10 priciest ZIP codes are now located in Southern California.

The players

Newport Beach

A coastal city in Orange County that has emerged as a major standout, claiming three of the top 10 ZIP codes for highest home values in California.

Lauren Kleiman

The mayor of Newport Beach, who says the pandemic has accelerated demand for homes in the area, pushing already-high values even higher.

Annie Clougherty

A real estate agent in Newport Beach who says the city has seen an influx of affluent buyers relocating from Los Angeles, drawn to its family-friendly neighborhoods and better schools.

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What they’re saying

“We look like a deal compared to LA real estate. We used to just compete for buyers in Orange County, and LA has definitely pushed that, bringing prices up.”

— Annie Clougherty, Real estate agent (Los Angeles Times)

“Since the pandemic, we are seeing even more people gravitating towards Newport.”

— Lauren Kleiman, Mayor of Newport Beach (Los Angeles Times)

“The bottom line is: We only have so many homes here, and people want to be here, whether it's to live and raise a family or to visit. It's a pretty special place.”

— Lauren Kleiman, Mayor of Newport Beach (Los Angeles Times)

What’s next

City officials in Newport Beach say the migration of affluent buyers from Los Angeles has not slowed, and they expect demand for homes in the area to remain high as the pandemic continues to reshape where people choose to live.

The takeaway

The shift in California's most valuable real estate markets away from Silicon Valley and towards Southern California highlights how the state's wealth patterns are evolving, driven by factors like lifestyle preferences, pandemic-induced migration, and limited housing supply. This trend raises concerns about affordability, even in historically affluent communities like Newport Beach.