How to Get the Best Appreciation in San Mateo: A Neighborhood Guide

When my clients begin their home search, they usually have a set idea of what is most important to them, and what they are willing  or able to spend. Using this as a jumping off point, we discuss their ultimate goals, and narrow down their search region based on which areas have the best appreciation potential given their budget, while meeting their immediate needs and wants.

San Mateo is attractive to many because of its location, sitting in between Silicon Valley and San Francisco, with Caltrain nearby and convenient for commuting. As with all Bay Area real estate, good schools, easy access to a downtown area, and neighborhood feel are the main driving factors for appreciation potential.

Having an agent who understands the city on a granular level is key for pinpointing your target area. For example, single family homes in San Mateo have appreciated an average of 33.3% from 2006 to the present. When you dig a little deeper into this data, you notice that not all neighborhoods have experienced the same rate of appreciation. To thoroughly analyze where your investment in a home will yield the highest ROI, you need an experienced local agent who lives and breathes the inventory and local market to tell you exactly where to buy.

Westwood Knolls

• Appreciation rate since 2006: 72%
• Schools: This neighborhood has highly rated schools. Laurel Elementary has an Academic Performance Index (API) of 931, while Abbott Middle School has an API of 826 and Hillsdale High has an API of 827.  Generally speaking, a school above 900 API is considered excellent, and typically fuels neighborhood appreciation.
• Easy access to a downtown area:  This area is proximate to a few areas with shops and restaurants, most notably Hillsdale Shopping Center.
• Neighborhood feel: This neighborhood is orderly and well kept, with tree lined streets and 1950’s style homes.

This neighborhood feels a bit like a cross between Belmont and San Mateo, and for good reason, it is right next to Belmont and shares some of the same architectural style and neighborhood feel.

I project continued above average appreciation for the Westwood Knolls neighborhood in the years to come, due to the factors above, most significantly being the strength of Laurel Elementary, and the proximity to Belmont making this a great choice for those who were looking in Belmont, but wanted to expand their options and get a little more bang for their buck.

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Foothill Terrace

• Appreciation rate since 2006: 67%
• Schools: This neighborhood has highly rated schools, with Baywood Elementary (API 941), Borel Middle School (API 849) and Aragon High School (874 API).
• Easy access to a downtown area:  This area is not super proximate to a downtown area, but is close to Laurelwood Shopping Center.
• Neighborhood feel: This neighborhood consists of rancher style homes, some modest and other larger. The streets are well kept and the area hilly, with some homes having great views.

This neighborhood has felt the benefits of the spillover effect from neighboring Baywood. For those who want a more affordable version of Baywood, but still assigned to the strong Baywood Elementary school, Foothill Terrace is it, and has seen a higher appreciation rate than Baywood itself over this time period.

I project continued above average appreciation for Foothill Terrace in the years to come, but perhaps a bit of a slowing in the rate of appreciation as Foothill Terrace reaches the prices of Baywood. The continued appreciation will be driven mainly by Baywood Elementary, and the pleasant neighborhood feel of this area.

The Highlands/Ticonderoga

• Appreciation rate since 2006: 67%
• Schools: This neighborhood feeds to high ranking Highlands Elementary (916 API).
• Easy access to a downtown area:  This area is not very close to a downtown area, which is a negative in terms of long term appreciation potential. However, it is proximate to nature trails, which is a plus for many.
• Neighborhood feel: This neighborhood sits at the top of the hill, giving it an airy, above-it-all feeling. The funky collection of Eichler homes on mainly larger lots makes the area feel consistent and homey, with some views of the westward hills.

This neighborhood is very unique, consisting mainly of midcentury modern “Eichlers,” designed by famed architect Joseph Eichler. These homes evoke strong emotions in people. I have found that generally speaking, buyers either love them or hate them. With the rise in popularity of midcentury modern style, think Mad Men, along with highly rated schools and a peaceful environment, The Highlands has experienced rapid appreciation since 2006.

San Mateo Terrace

• Appreciation rate since 2006: 54%
• Schools: This neighborhood feeds to Beresford Elementary (API 846) or Meadow Heights Elementary (API 885), Abbott Middle (826 API) and Hillsdale High (827 API).
• Easy access to a downtown area:  This area is not super proximate to a significant downtown area, but does have a small strip of commercial nearby.
• Neighborhood feel: This neighborhood consists of modestly-sized rancher style homes, with rolling hills, wide streets and good tree cover.

San Mateo Woods/Laurel Creek

• Appreciation rate since 2006: 54%
• Schools: This neighborhood can feed to Laurel Elementary (API 931), Abbott Middle (826 API) and Hillsdale High (827 API), a high ranking combination.
• Easy access to a downtown area:  This area is not proximate to a downtown area.
• Neighborhood feel: This neighborhood consists of mainly single family homes on some larger lots, with wide streets. Some homes have views of San Francisco and the Bay. The neighborhood is quiet and peaceful, with a comfortable feel.

I project this area to continue experiencing above average appreciation, due to the strong schools, large lots and a tranquil neighborhood feel.

San Mateo Park/El Cerrito Park

• Appreciation rate since 2006: 47%
• Schools: This neighborhood feeds to Park Elementary (API 891), Borel Middle (API 849) and San Mateo High (API 798).
• Easy access to a downtown area:  This area is proximate to downtown Burlingame, which is a big plus for most buyers.
• Neighborhood feel: This neighborhood consists of large stately homes, on oversized lots. The streets are wide and charming, and the neighborhood feels similar to bordering Hillsborough, but with more proximity to shops and restaurants.

I predict continued above average appreciation for this area, due to the beautiful homes and large lots, and proximity to downtown Burlingame.  However, the schools that are assigned to this neighborhood do not score as high as others in San Mateo, and this is likely the factor that is dampening appreciation in this neighborhood.

San Mateo Woods/Bayridge

• Appreciation rate since 2006: 44%
• Schools: This neighborhood feeds mainly to Highlands Elementary (API 916), Borel Middle (849 API) and Aragon High (874 API).
• Easy access to a downtown area:  This area is not super proximate to a significant downtown area, but does have Crystal Springs and Laurelwood shopping centers nearby.
• Neighborhood feel: This neighborhood consists of mainly 70s era townhomes and condos, some with views. The neighborhood is quiet and tranquil, and proximate to some commercial areas, but not downtown San Mateo.

I predict continued above average appreciation for this area, due to the desirable schools and pleasant environment. However, the concern with planned developments such as those that are prevalent in this area is that since they were built at the same time, they age at the same pace, with no new construction to fuel appreciation trends.

Baywood Park

• Appreciation rate since 2006: 43%
• Schools: This neighborhood feeds mainly to Highlands Elementary (API 916), Borel Middle (849 API) and Aragon High (874 API).
• Easy access to a downtown area:  This area is not proximate to a significant downtown area.
• Neighborhood feel: This neighborhood consists of mainly single family homes (some ranch style, some Eichlers), and a spattering of townhomes. The neighborhood is set amongst rolling hills, with some larger homes on large lots. The streets are wide, with an airy feel.

I predict continued above average appreciation, fueled mainly by the strong schools assigned to this area.

Homestead/Husing Subdivision

• Appreciation rate since 2006: 41%
• Schools: This neighborhood feeds to Baywood Elementary (API 941), Borel Middle (849 API) and Aragon High (874 API).
• Easy access to a downtown area:  This area is proximate to downtown San Mateo.
• Neighborhood feel: This neighborhood is varied in composition, with mainly modestly sized but well constructed single family homes, some townhomes and condo/apartments. The neighborhood is friendly, with a great tree canopy and charming homes.

I predict the appreciation for this neighborhood will accelerate in the years to come, as more and more buyers place value on great schools and proximity to downtown San Mateo over larger homes that aren’t as close.

Aragon

• Appreciation rate since 2006: 41%
• Schools: This neighborhood feeds to Baywood Elementary (API 941), Borel Middle (849 API) and Aragon High (874 API).
• Easy access to a downtown area: This area is proximate to downtown San Mateo.
• Neighborhood feel: This neighborhood consists of larger, architecturally beautiful homes with old time character, situated on quiet tree-shaded streets. This is one of the neighborhoods in San Mateo with the best neighborhood charm.

I predict the appreciation for this neighborhood will continue to experience above average appreciation in the years to come, fueled by the trifecta; well ranked schools, proximity to downtown and charming neighborhood feel.

Lakeshore

• Appreciation rate since 2006: 38%
• Schools: This neighborhood feeds to Parkside Elementary (API 811), and Aragon High (874 API).
• Easy access to a downtown area: This area is not proximate to downtown San Mateo.
• Neighborhood feel: This neighborhood consists of tract development homes on smaller sized lots and some condo/apartments.

I predict the appreciation for this neighborhood will continue to experience slightly above average appreciation in the years to come, fueled by the constitution of this area being similar to that of neighboring Foster City, along with the relative affordability of this area within the San Mateo/Foster City area. It’s a good area to watch.

Bowie Estate

• Appreciation rate since 2006: 34%
• Schools: This neighborhood feeds to different elementary schools depending on the portion of the neighborhood, but none are considered among the highest ranking elementary schools in San Mateo.
• Easy access to a downtown area:  This area is very proximate to downtown San Mateo.
• Neighborhood feel: This neighborhood consists of a mix of high density housing, charming smaller homes, and smaller tract style houses.

I predict the appreciation for this neighborhood will continue to track that of San Mateo as a whole in terms of appreciation. The proximity to downtown San Mateo is the major strength of this area, and this is highly valued amongst many of today’s homebuyers.

Park Western Subdivision/Hillsdale

• Appreciation rate since 2006: 33%
• Schools: The majority of this neighborhood feeds to Laurel Elementary (API 931), Abbott Middle (826 API) and Hillsdale High (827 API).
• Easy access to a downtown area:  Depending on the location within this area, houses can have very good proximity to shops and restaurants at Hillsdale Shopping Center.
• Neighborhood feel: This neighborhood consists of a mix of larger and smaller single family homes, and some higher density living. Part of the neighborhood is hilly with wide sidewalks, and part is more flat in constitution.

I predict this neighborhood will see above average appreciation in the years to come, as a result of the strong schools and proximity to some shops/restaurants.

Below are the neighborhoods in San Mateo that have experienced below average appreciation from 2006 to present. There are many reasons for this, but the general factors to consider are schools, proximity and neighborhood feel. For a more detailed analysis, feel free to reach out to a Redfin agent.

• San Mateo Village/Glendale Village, 31%
• Parkside, 31%
• North Shoreview/Dore Cavanaugh, 30%
• Fiesta Gardens, 29%
• South Shoreview, 21%
• Hayward Park, 20%
• Los Prados, 19%
• Beresford Manor, 15%
• Baywood/Parrott Park, 14%
• Laurelwood, 13%
• 19th Avenue Park/Sunnybrae, 11%
• Eastern Addition/Downtown Area, 2%
• Lauriedale, -24%

About Mia Simon
Mia is a Bay Area native, who graduated with a bachelor’s degree and juris doctor degree from University of California-Berkeley. She began her career as an associate with a large international law firm. After practicing law for a few years, she made the leap to real estate broker. Mia is currently an area manager with Redfin, helping her teams and clients navigate the fierce real estate market in Silicon Valley. In her spare time, she enjoys hanging out with Ruby, her English bulldog, making green smoothies, and drinking Philz coffee.