
I’m sharing my top five picks for empty nester neighborhoods that are affordable alternatives to Palo Alto. More and more empty nesters want to happily live out the rest of their lives right here, by unlocking the equity from their Palo Alto home, and buying a modest home nearby at a good value. They don’t want to relocate to a retirement Shangri La where nobody knows their name.
Recently, some clients of mine wanted to cash out of their Palo Alto Home, downsize — and stay local. “Where do we go?” they asked me. “Our life, our friends, our community is here.” Where could they remain close to their social ecosystem, enjoy the same livability and cultural activities, and get some bang for their buck without paying the Palo Alto premium? Plus, they’d heard stories about low inventory and multiple offers from Palo Alto to Burlingame. Was it even possible to find a quality neighborhood without high prices?
YES! There are several up-and-coming neighborhoods that are great picks for empty nesters, who no longer have to think about putting kids in schools. I’ve ranked my favorite lesser-known neighborhoods by median price, average price per square foot and available inventory. Here is the inside track on my top five undiscovered areas that fit the bill for empty nesters:

1. Farm Hill Estates/Cordilleras Heights (Redwood City)
Inventory Year-to-date*: 58
Median Sale Price: $957,000
Average price per square foot: $518
Up in the hills off 280, Farm Hills Estates offers the Portola Valley feel without Portola Valley prices. Many hillside homes have views of the bay. Residents enjoy country living – streets with no sidewalks, neighbors with chickens. Upscale new construction sells at a discount to more mainstream areas. This neighborhood along Farm Hill Boulevard enjoys bigger homes on larger lots than most. Homes on the south side of Farm Hill Boulevard rival Sharon Heights in quality, size and location.
2. High School Acres (Edgewood Park) (Redwood City)
Inventory YTD*: 38
Median Sale Price: $855,000
Average price per square foot: $523
This neighborhood reminds me of Crescent Park, with winding, tree-lined streets and mix of substantial 3000+ square foot homes on lots of an acre or more, alongside 2000 square foot homes on quarter acre lots. Its main artery has the same feel as University Avenue – big, beautiful homes, with more modest homes surrounding it – but without the constant traffic of University Avenue. It’s minutes from Palo Alto and Menlo Park. People love the revitalized downtown of Redwood City. Both retirees and families are moving to Redwood, recognizing the good buys available here. A charming 3 bedroom, 2 bath home, 1,680 sq ft on a 6,500 square foot lot, recently sold here for $920,000.
3. Downtown Mountain View
Inventory YTD*: 18
Median Sale Price: $1,027,000
Average price per square foot: $659
Mountain View’s charming downtown living appeals to a mix of empty nesters and young families – the walk to Castro Street, the local library, and the Farmer’s Market on Sundays. The average home downtown is 1500 square feet, and prices are roughly $1M to $1.5 million. While homes here are selling over list price, the price per square foot is considerably less than Menlo Park and Palo Alto. It’s still a great value, even though the market here is somewhat competitive.
4. Horgan Ranch (Redwood City)
Inventory YTD*: 33 listings
Median Sale Price: $688,000
Average price per square foot: $462
Horgan Ranch sits right next to Atherton, between Selby Lane and Woodside road, from El Camino to Alameda. Orchards once covered this land, and mini-farms with little houses on big lots that have been transformed over the years into more modern homes, with bigger lots than average. You can buy a nice single family home for under $1.5M in Horgan Ranch. Being close to downtown Menlo Park makes it feel like you haven’t even moved, because you’re still in town.
5. Sharon Heights (Menlo Park)
Inventory YTD*: 11 listings
Median Sale Price: $718,000
Average price per square foot: $516
Sharon Heights in Menlo Park is filled with large townhouses that feel like single family living. A 2000 to 3000 square foot townhouse affords you the space that doesn’t feel like downsizing, and allows you to lock the door and forget about your house for months at a time. In moving to Sharon Heights, residents are exchanging their primetime Palo Alto schools for pretty views of the bay. This neighborhood is much less competitive and price per square foot is reasonable.
*Inventory year-to-date includes all listings (sold, sale pending, and active), from January 1 through April 10, 2012.