This document summarizes the top 3 most expensive ZIP codes in the United States based on median home price data from June-September 2012. Manhattan's 10065 ZIP code, located on the Upper East Side, has the highest median home price of $6,534,430 and is the number one spot on the list. The second most expensive is Alpine, New Jersey with a median of $5.75 million. Third is Atherton, California with a median of $4.9 million. These areas are home to wealthy individuals and have luxury single-family homes and condominiums listed at multi-million dollar price points.
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16. Homes In The 100 Most
Expensive ZIP Codes
Morgan Brennan, Forbes Staff
I write about real estate markets, outrageous homes and cities.
BUSINESS
10/16/2012 @ 12:00PM |67,330 views
Manhattan's Now Home To
America's Most Expensive
Zip Code
17. 1. 10065, New York, NY
Median Home Price: $6,534,430
Average Days On Market: 449
Number Of Homes On The Market: 80
The most expensive home listed for sale in Manhattans 10065 ZIP code hasnt even been
built yet. On a vacant lot at 34 East 62nd Street, developer Janna Bullock is planning to build
a six-level Modernist limestone townhouse designed by architect Preston Phillips. It will have
a subterranean indoor pool, a glass-enclosed elevator and a waterfall-bedecked private
courtyard a townhouse with no comparables, according to the $40 million listing. Except
there are, and lots at that.
The pricey blueprint joins about two-dozen eight-figure single-family mansions that dot the
tree-lined streets of this Upper East Side ZIP code, including an over-the-top man cave
created by billionaire Alexander Rovt thats on the market for $21 million. The area, which
runs east from Central Park past ritzy Park Avenue apartment houses to the East River, and
north from 60th Street to 69th, is home to such plutocrats as David Rockefeller, Rupert
Murdoch, Ronald Perelman, Robert Bass and Sumner Redstone. Add more than 50 condo
units with price tags running to seven figures or higher, and the median asking price for
homes in 10065 is $6.5 million. All those comparables land the Upper East Side enclave in
the top spot on Forbes annual list of the Most Expensive ZIP Codes.
This is the first time that a Big Apple neighborhood has topped our list. It pushed 2011s
priciest ZIP code, Alpine, N.J., 07620, to No. 2, followed in third place by another usual
suspect: Atherton, Calif., 94027.
Alpine is a discreet New York City suburb where the median home price is $5.75 million,
street addresses are regularly scrambled on GPS and residents include celebrities like Stevie
Wonder and Sean Diddy Combs. Atherton, a tony town in Silicon Valley, boasts a roster of
billionaires including Eric Schmidt, Charles Schwab and Meg Whitman, who help sustain a
median home price of $4.9 million.
We compiled our list with the help of Altos Research, a Mountainv View, Calif.-based company
that tracks housing data. It pulled pricing information for more than 22,000 ZIP codes across
the U.S. for June 28 to Sept. 28, drilling down to the 500 most expensive. Altos calculated
the median asking price for single-family homes and condominiums, weighting the price
based on the mix of local property types. We did not include co-ops (which may have pushed
some of the fancier ZIP codes near Central Park in Manhattan lower on our list).
Altos limited the search to ZIP codes where 10 or more residences were listed for sale,
including short sales and bank-owned foreclosures on the market. Homes bundled into REO
bulk sales were excluded. To smooth out any wrinkles caused by a weeks unusual activity
(like, say, an expensive home coming to market in an area where luxury properties are rare),
Altos used a rolling average for the 90-day period.
Since our list is based on asking prices rather than tax assessments, it may not be completely
representative of the communities featured for example, neighborhoods that have become
swanky in the past few decades could contain pockets of longtime residents in more modest
homes. Rather, our list is a snapshot of each markets current activity. If you enter these
markets as a buyer today, this is what you would experience, says Michael Simonsen, chief
executive of Altos Research, and if you are going to sell, this is your competition.
In some cases a ZIP may appear more than once on our list if its shared by two or more
towns. For example, Los Altos Hills (No. 7) and Los Altos (No. 63) share 94022.
The main factor driving listing prices in Americas most expensive ZIP codes this year is a
lack of inventory. In general, across the board inventory is down by a third, says Simonsen.
In Northern California markets, levels are down even more dramatically.
In Manhattan, lower inventory levels helped four ZIP codes crack the top 10, while 19 in total
made the list. Hip downtown hoods where the market is limited in large part to premium
loft space and townhouses clocked exceptionally high prices for the second year in a row.
The celebrity-studded West Village 10014 ZIP code ranked sixth, TriBeCa 10013 was 14th,
and SoHo, 24th.
Uptown around Central Park, a flurry of record-breaking sales, including an $88 million
apartment at 15 Central Park West and $90 million-plus pending sales at up-and-coming
skyscraper One57, have brought a flood of would-be trophy properties to market (including
four apartments listed at $95 million-plus). Eight park-hugging ZIP codes made our list.
Manhattans market is frothy right now, says Dolly Lenz, vice chairman of Prudential
Douglas Elliman Real Estate. Since the last week of September, she has personally closed
more than $120 million in sales around the borough. Interestingly, only one of those buyers
was an American.
18. Wealthy foreign buyers looking to make safe-haven investments have helped to elevate
prices in many of Americas most expensive ZIP codes; a booming U.S. technology sector and
renewed interest in vacation homes have been strong contributing factors as well.
Many of the worlds new wealthy are looking for places to park their money and despite the
economic uncertainty, the pattern is to buy and hold property in the U.S., says Jonathan
Miller, chief executive of Miller Samuel, a New York-based appraisal firm. Foreign buyers have
been active in Washington, D.C., Los Angeles, Seattle and Los Angeles all well-represented
on our list. Foreigners have been a particularly notable force in rebounding Florida, where 26
ZIP codes crack our list.
In South Florida, buyers from Europe, South America and Russia looking for pied-a-terres
have fueled a robust resurgence in condo prices. The trend also pushed Floridas Coral
Gables 33156 into the 15th spot on our list, up 108 spots from last year. The median asking
price in Gables Estates, the posh waterfront community bordering Miami that comprises
33156, is $3.48 million. Nearby Coral Gables 33143 ranks 34th, and Fisher Island 33109
ranks 39th.
The Miami market is the hottest we have ever seen it hotter than 2005, says Jill Eber of
The Jills team at Coldwell Banker Previews International. Her broker team has closed more
than $320 million in sales since the start of 2012; in 2005, the peak of the Miami housing
bubble, the team closed $280 million for the entire year.
Meanwhile, a booming tech sector has enriched financiers and entrepreneurs. Silicon Valley
accounts for three of the top 10 ZIP codes, including Atherton, Hillsborough 94010 (No. 5),
and Los Altos Hills 94022 (No. 7). Inventory is drastically down in all four and listing prices
have jumped.
The Bay Area has had some of the fastest job growth in the country, but there are also a lot
of strong limitations on new housing, says Jed Kolko, chief economist at Trulia.com, a San
Francisco, Calif.-based home listing site. When you have that combination, it pushes up
prices. The vacancy rate is lower than anywhere else in the country.
Across the U.S. in the capital area, a blossoming tech industry, coupled with strong
government spending and a growing international buying pool, helped place four Washington,
D.C. ZIPs on our list along with 30 in the surrounding suburbs in Maryland and Virginia. In
D.C.s most expensive, 20008 (No. 48), the median listing price jumped 116%. Its a very
stable population and there is a tremendous international contingent, says Miller.
The market for vacation homes has rebounded in the most sought-after areas. In Colorado,
81611 (No. 13), where billionaire John Paulson spent $49 million on the Hala Ranch, heads a
collection of pricey Aspen-area enclaves. In Hawaii, the growing wealth of tech titans is
trickling into vacation home-heavy ZIP codes in Kauai and Maui. On the East Coast, Long
Islands Hamptons is heating up, even as the weather begins to cool. Sagaponack, the
Southampton village where billionaire Ira Rennert, Goldman Sachs chief Lloyd Blankein and
musician Billy Joel own homes, ranks fourth on our list, cracking the top five for the second
year in a row.
More On Forbes:
Full List: Americas 100 Most Expensive ZIP Codes
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