> Because they are effectively in the same geographic area. Yes > The housing prices aren't that different until you hit outlying areas like Livermore. No.

> Because they are effectively in the same geographic area. Yes > The housing prices aren't that different until you hit outlying areas like Livermore. No. Palo Alto's median house price is almost 3x San Jose and Fremont's. Union City is much cheaper than both, San Leandro's is less than 1/4th of PA's, and Oakland is significantly lower. Cupertino splits the difference between SJ and PA with nice houses while Redwood city does with crap. (Berkely comes in lower than both.) http://www.trulia.com/real_estate/Palo_Alto-California/ http://www.trulia.com/real_estate/Palo_Alto-California/ It might be reasonable to argue that the peninsula cities (to San Jose) are one market, but SJ and south and the east bay are different, even on this side of the hills.