Each December, Property Shark releases a report detailing the 100 most expensive zip codes in the U.S. based on closed home sales. And, in a clear sign of the times, for the first time in years the financial titans of New York have been outspent by the rising tech billionaires of Silicon Valley as Atherton, California secured the distinguished award of most expensive zip code in the United States with the average home going for nearly $5 million.
After winning the title of most expensive zip code in the US two years in a row, Sagaponack’s 11962 lost to Atherton in 2017. The exclusive Hamptons community dropped all the way to 15th position, mainly due to more sales recorded at lower price points, which slashed its median sale price in half. In 2017, Sagaponack’s median sale price was $2,819,000, while the barrier for entry in the top 10 is $3 million.
Sagaponack was also outranked by two neighboring zip codes – 11976 in Water Mill and 11975 in Wainscott, which broke into the top 10 in 2017, each climbing 7 spots from last year and reshuffling the top 10 as the only new entries.
With Sagaponack out of the picture, the top 3 positions are now claimed by zip codes from three different states: California, New York, and Florida. The nation’s priciest zip codes feature very different housing markets: Atherton’s 94027 is the playground of the richest people in Silicon Valley, New York’s 10013 covers TriBeCa with its luxury condo developments, while 33109 in Fisher Island is a small, secluded island community.
Not surprisingly, counties in California and New York dominated the rankings with just 7 counties accounting for 75 of the top 100 most expensive zip codes.
Meanwhile, on a state level, California and New York account for nearly all of the country's most overpriced housing jurisdictions.
Of course, as we pointed out earlier this morning (see: Tax Plan Jitters Cause Sudden Collapse In Manhattan Apartment Prices In 4Q), with up to 65% of homes sold in counties like New York and Santa Clara having a mortgage over $750,000 (the new mortgage interest deduction cap under the Trump tax plan), America's "millionaire, billionaire, private jet owners" may be on the precipice of taking the proverbial bath on their posh palaces.