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.

While San Francisco’s prices are still higher—the median home value there is $1,095,574—its market has cooled a bit in recent months. San Francisco saw home sales volume drop by more than 7% in October from a year earlier, according to real-estate tracker CoreLogic , while Oakland and surrounding areas have remained relatively strong.

Oakland’s rising cost of living has attracted attention since the recent fire there that killed 36 people. The tragedy took place in a warehouse that illegally housed a community of artists and others living in unsafe conditions; some survivors said they couldn’t otherwise afford to live in the area.