What’s Driving Up Prices for One-Story Homes?
(It’s Not What You Think)
If you’ve been following the real estate market in
Danville (94526) or Alamo (94507)
lately, you’ve probably noticed something surprising —
one-story homes are still selling for premium prices.
Even as the broader market has adjusted, these single-level homes continue to attract competitive offers, cash buyers, and fast sales. But the real reason why might not be what you think.
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1. It’s Not Just Out-of-Town Buyers — It’s Locals Too
Yes, there’s strong demand from Bay Area buyers moving out of Marin, the Peninsula, and San Francisco for more space and sunshine — but there’s also a huge wave of local homeowners driving this trend.
Many longtime Danville and Alamo residents raised their families here, watched their kids head off to college, and now find themselves with a large two-story home that no longer fits their lifestyle.
They love the area — the scenic open spaces, the walkable downtown with over 50 restaurants and cafés, the sense of community, and the safety that make 94526 and 94507 two of the most desirable zip codes in the East Bay. They don’t want to leave… they just want a home that makes sense for the next chapter.
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2. Downsizing Without Leaving the Neighborhood
Thanks to California’s Proposition 19, many of these homeowners can now sell their current property and transfer their lower property tax base to a new home — even if it’s more expensive.
That means they can cash in on years of equity, simplify their lifestyle, and still enjoy the same community — with the bonus of single-level living.
For many, it’s the perfect solution:
No stairs
Manageable space
Still near family and friends
Same familiar tax savings
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3. The Allure of Larger Lots and ADU Potential
Unlike newer developments that maximize interior square footage, older one-story homes in Danville and Alamo typically sit on larger, flatter lots. That extra land opens up possibilities for:
• An ADU (Accessory Dwelling Unit) — perfect for guests, adult children, or rental income
• Expanded outdoor living — think pools, patios, and gardens
• Future flexibility — room for home offices, gym space, or creative studios
For many homeowners transitioning to single-story living, having a spacious yard with ADU potential offers the best of both worlds — the comfort of right-sizing and the opportunity for additional income or family convenience.
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4. Affluent Buyers Value Lifestyle Over Size
In 94526 and 94507, the market isn’t just about square footage — it’s about quality of life. Buyers are looking for functional layouts, timeless designs, and proximity to everything that makes Danville and Alamo special: top-rated schools, hiking trails, fine dining, boutique shopping, and the community charm that defines the East Bay lifestyle.
A beautifully maintained single-story home that checks those boxes is a rare find — and buyers are willing to pay for it.
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5. Limited Supply Keeps Prices Strong
With fewer single-story homes available and continued demand from both local downsizers and incoming affluent buyers, the competition for well-located one-level homes remains fierce.
Even in a balanced 2025 market, these properties often sell quickly and close to (or above) asking price.
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The Bottom Line
If you own a one-story home — or are considering downsizing...
Between Prop 19 tax advantages, strong equity positions, and sustained buyer demand, it’s a prime time to explore your options — whether you’re selling, relocating locally, or planning for the future.
