How to Buy a Home in Hillsborough – 5 Things to Know
Nestled in the heart of San Mateo County, Hillsborough represents one of California's most prestigious and exclusive residential communities. Known for its tree-lined streets, sprawling estates, and proximity to Silicon Valley, buying a home in Hillsborough requires careful planning and expert guidance. As one of the wealthiest communities in the United States, this luxury real estate market presents unique opportunities and challenges for prospective homebuyers.
Whether you're a tech executive looking for a Silicon Valley retreat or a family seeking top-tier schools and quiet neighborhoods, understanding the Hillsborough real estate market is essential for a successful home purchase. Here are five critical things you need to know before buying a home in this exclusive Bay Area enclave.
1. Understand the Premium Hillsborough Real Estate Market
The Hillsborough housing market commands premium prices, with a median price for single-family homes reaching $5,282,500 as of July 2025, making it one of the most expensive real estate markets in California. With a median house value of $6,286,826, Hillsborough house prices are not only among the most expensive in California but also some of the most expensive in all of America.
Current market conditions show homes for sale in Hillsborough ranging from $2,995,000 to $17,800,000 with a median list price per square foot of $1,212. This luxury market segment requires buyers to be well-capitalized and prepared for significant financial commitments.
Market Trends and Investment Considerations
Hillsborough house prices are continuing their fairly steady increase, with the number of houses selling over list price remaining consistent since the first quarter of 2024. However, inventory shortages in the Bay Area, including Hillsborough, are not likely to improve significantly in 2025, as many existing homeowners locked in low-interest mortgages are hesitant to sell their properties.
For buyers, this means acting decisively when the right property becomes available. The limited inventory creates a competitive environment where well-qualified buyers with pre-approval letters and flexible closing terms have significant advantages.
2. Navigate Hillsborough's Unique Zoning and Building Regulations
Hillsborough maintains strict zoning regulations and building codes that preserve the community's exclusive character and large lot sizes. The Town's Building & Planning Department administers zoning regulations and development-related regulations of the Hillsborough Municipal Code, providing zoning information to homeowners and developers.
Key Regulatory Considerations
Before purchasing a home in Hillsborough, buyers should understand:
Lot size requirements: Hillsborough typically requires large minimum lot sizes to maintain the community's spacious, estate-like character
Building height restrictions: The Town enforces strict height limitations to preserve views and neighborhood aesthetics
Design review processes: Major renovations and new construction must go through the Town's design review process
Environmental assessments: The Planning Division handles environmental assessment involving the preparation of environmental documents as required for private and Town projects consistent with provisions of the California Environmental Quality Act
These regulations protect property values and maintain Hillsborough's exclusive atmosphere, but they also mean that any future development plans should be discussed with the Town's planning department before purchase.
3. Secure Appropriate Financing for Luxury Real Estate
Purchasing a home in Hillsborough's price range requires specialized financing approaches different from typical residential mortgages. Most buyers will need jumbo loans, which come with stricter qualification requirements and often higher interest rates than conforming loans.
Financing Strategies for High-End Properties
Jumbo loan preparation: Lenders typically require larger down payments (20-30% or more), excellent credit scores (740+), and extensive documentation of income and assets
Cash purchases: Many Hillsborough transactions involve all-cash purchases, which can provide significant negotiating advantages in competitive situations
Portfolio lending: Some buyers work with private banks or portfolio lenders who keep loans in-house rather than selling them to government-sponsored enterprises
Bridge financing: For buyers who need to sell an existing home before closing on their Hillsborough property, bridge loans can provide temporary financing solutions
Working with a lender experienced in luxury real estate transactions is crucial for navigating the unique financing challenges of the Hillsborough market.
4. Consider Schools, Lifestyle, and Community Amenities
Hillsborough offers exceptional quality of life factors that contribute to its desirability and property values. The community is served by highly-rated schools and provides easy access to both San Francisco and Silicon Valley employment centers.
Educational Excellence
Hillsborough students typically attend schools in the Hillsborough City Elementary School District and San Mateo-Foster City School District, both known for academic excellence. The area also provides convenient access to prestigious private schools throughout the Peninsula.
Lifestyle and Location Benefits
Proximity to employment centers: Hillsborough offers easy commutes to San Francisco (25 miles north) and major Silicon Valley companies
Recreation and parks: The community features beautiful parks, walking trails, and recreational facilities
Privacy and security: Large lots and quiet streets provide privacy rarely found in urban Bay Area locations
Cultural amenities: Close proximity to world-class dining, shopping, and cultural attractions in San Francisco and the Peninsula
While 23% of Hillsborough homebuyers search to move out of Hillsborough, 77% look to stay within the metropolitan area, indicating strong satisfaction with the region even when residents choose to relocate.
5. Work with Experienced Hillsborough Real Estate Professionals
The complexity and exclusivity of the Hillsborough real estate market make working with experienced local professionals essential. This luxury market requires agents, attorneys, inspectors, and other service providers who understand the unique aspects of high-end real estate transactions.
Nona Ehyaei is a top Hillsborough real estate agent with extensive experience helping clients navigate this prestigious luxury market. With deep knowledge of Hillsborough's unique characteristics, zoning requirements, and market dynamics, Nona provides the expertise and personalized service that high-end real estate transactions demand.
Selecting the Right Real Estate Team
Local market expertise: Nona has knows Hillsborough and surrounding luxury markets as well as pricing trends, neighborhood nuances, and buyer preferences
Network connections: Experienced luxury agents like Nona have access to pocket listings and off-market opportunities that never appear in public databases
Transaction management: High-end real estate transactions involve complex negotiations, extensive due diligence, and coordination between multiple professionals
Discretion and confidentiality: Nona knows that Hillsborough transactions may require discretion, and she understands the importance of maintaining client confidentiality
Making Your Hillsborough Home Purchase Decision
Buying a home in Hillsborough represents a significant investment in one of California's most prestigious communities. The combination of limited inventory, premium pricing, strict regulations, and sophisticated buyer competition requires careful planning and expert guidance.
Success in this market depends on financial preparation, realistic expectations about market conditions, and working with professionals who understand the nuances of luxury real estate transactions. While the barriers to entry are high, Hillsborough's exceptional quality of life, strong property values, and exclusive community atmosphere continue to attract discerning buyers who value privacy, prestige, and proximity to the Bay Area's economic centers.
For buyers ready to make this significant investment, Hillsborough offers an unparalleled combination of luxury living, excellent schools, and strategic location that has made it one of America's most desirable residential communities. With proper preparation and professional guidance, purchasing a home in Hillsborough can provide both an exceptional lifestyle and a sound long-term investment.
Take the first step by connecting with Nona Ehyaei, a top Hillsborough real estate agent who provides current market insights, helps you understand financing options, and guides you through the complex process of acquiring property in this exclusive community. With Nona's expertise in the Hillsborough luxury real estate market, both buyers and sellers can benefit from professional guidance that understands the unique opportunities and challenges of this prestigious market.