Atherton's housing landscape is defined by single-family zoning and one-acre-minimum lot sizes, which produce a stock of large, private estates rather than dense residential development. Many parcels carry mature oaks and extensive landscaping, and the town's codes reinforce a scenic, wooded, semi-rural character. Homes range from older estates and mid-century Eichler designs, particularly in the Lindenwood area, to large custom-built residences. There is no commercial zoning, so the town remains entirely residential. Buyers drawn to Atherton are typically seeking acreage, privacy, and proximity to Silicon Valley employment, and the market reflects a long-standing demand for Peninsula land rather than volume housing.

Atherton's neighborhoods are shaped by large lots and tree-lined streets. Lindenwood, in the northeast part of town, is known for its gated, curving streets and a concentration of Eichler-designed mid-century homes, with parcels of about an acre. West Atherton and the areas near the Menlo Circus Club and Holbrook-Palmer Park hold a mix of older estates and newer custom homes, often behind gates or deep setbacks. The town's layout deliberately avoids a grid, and many streets lack sidewalks, reinforcing the private, estate-like feel. Each neighborhood functions as a quiet residential enclave within a short drive of Menlo Park, Redwood City, and Stanford.

Atherton is a quiet, residential community by design. With no commercial zoning, day-to-day errands, dining, and shopping happen in adjacent Menlo Park, Redwood City, and Palo Alto, while the town itself stays calm and low-traffic. Community life runs through local organizations such as the Atherton Heritage Association, the Arts Committee, and the Friends of the Atherton Library, and the private Menlo Circus Club offers tennis, swimming, and equestrian facilities. Holbrook-Palmer Park hosts gatherings and provides open space. Residents value privacy and a semi-rural feel, and the town's location puts the employment centers of Silicon Valley and San Francisco within an easy commute.

Atherton does not operate its own public school district. Elementary students attend schools in neighboring districts, including the Menlo Park City School District, the Las Lomitas Elementary School District, and the Redwood City School District, while high school students attend Menlo-Atherton High School in the Sequoia Union High School District. Private options within the town include Sacred Heart Schools and Menlo School, and Menlo College, a private four-year institution, is also located there. Families can also reach a wide range of public and private schools elsewhere on the Peninsula, and the nearby Stanford University community shapes the broader educational environment.

Atherton sits in the middle of the San Francisco Peninsula, about two miles southeast of Redwood City and 18 miles northwest of San Jose, with San Francisco roughly 30 miles to the north. U.S. Highway 101 and the Caltrain commuter-rail corridor run just east of the town, providing access to Peninsula job centers and San Francisco, while Interstate 280 lies a short distance west. Stanford University and Menlo Park are minutes away. The town's quiet, low-traffic streets are intentionally residential, and most residents commute by car or rail to workplaces across Silicon Valley and the broader Bay Area.

Holbrook-Palmer Park, a 22-acre former estate given to the town in 1958, is Atherton's central open space and is listed on the National Register of Historic Places. It offers lawns, paths, and gathering space for community events. The private Menlo Circus Club provides tennis, swimming, stables, and a riding ring within the town. Beyond Atherton, the Peninsula offers extensive trail systems, bayfront parks, and the open space of the nearby foothills, while the amenities of Menlo Park, Redwood City, and Stanford are a short drive away.