The Soaring Cost of Living in Oakland (The Wall Street Journal)

The Soaring Cost of Living in Oakland

The low-key neighbor of San Francisco is undergoing a rapid transformation as housing prices rise.

With soaring prices, low inventory and a buzzing tech scene, Oakland—San Francisco’s low-key neighbor 6 miles to the east—has its own crazy housing market.

Neighborhoods once known for modest bungalows and starter homes now regularly see million-dollar-plus sales. Condominium and apartment buildings are under construction, transforming once blighted areas into trendy destinations. And the city is bracing for an influx of new jobs as tech companies like Uber and Fluid set up offices downtown.

Rents and prices are skyrocketing in this East Bay city, long considered an affordable alternative to San Francisco. Median home values have grown by more than 70% since 2012, jumping to $658,844 from $387,182, according to Trulia. In Rockridge, a popular neighborhood on the Berkeley border, a 2,100-square-foot, two-bedroom house with a guest cottage recently sold for a record $2.4 million, says listing agent Anthony Riggins.