San Jose Posts Strong Second Place in Silicon Valley Housing Completions

Silicon Valley added more than 9,000 new housing units in 2025, according to state data, with San Jose finishing second behind Santa Clara. The city completed 2,192 units while Santa Clara led the region with 2,685.

Four cities in the area finished more than 1,000 units each. High construction costs continue to shape which projects move forward, yet the overall numbers reflect steady progress toward regional needs. Santa Clara’s total benefited from projects that secured financing earlier, particularly in the Clara District and the first phase of Gateway Crossings.

Morgan Hill completed just 35 units last year but sits on track to meet its state-assigned RHNA target of 1,037 homes for the 2023-31 cycle, with stronger permitting activity already showing in the first half of 2026. San Jose carries the largest regional obligation at more than 62,000 units over the same period.

The results highlight ongoing efforts across the South Bay to expand the housing supply. Continued collaboration between cities and developers will determine whether the momentum carries into the next several years as communities work to meet long-term goals.

Source: SVBJ

San Jose Posts Nation’s Weakest Home Price Growth Amid Tech Layoffs

Local buyers gained a measure of breathing room in June as the San Jose metro area recorded the weakest year-over-year home-price change among the nation’s 40 largest housing markets. The median sale price fell 4.6 percent to $1.619 million, a drop of roughly $78,500 from the same month a year earlier, according to Homes.com data. Nationally the median rose $6,000 to $401,000.

San Francisco followed a different path. That city’s median climbed 7.2 percent to $1.7 million, lifted by concentrated AI hiring and startup activity that San Jose has not matched at the same scale. Analysts pointed to a sharp rise in second-quarter layoff announcements, including several thousand positions at Meta that touched Menlo Park, Sunnyvale and Fremont, plus additional cuts at Oracle, LinkedIn and Intuit. Recent monthly payroll reports also showed the broader Bay Area job market contracting after a period of modest growth.

Slower immigration has further cooled demand. Foreign-born residents make up about 41 percent of Silicon Valley’s population and have long filled high-skilled roles, founded companies and eventually purchased homes. With that pipeline thinning, one key source of both labor and housing pressure has eased. The resulting price softness stands out after years in which the region’s market appeared almost immune to gravity, raising questions about the longer-term strength of the local economic engine even as it offers short-term relief to would-be buyers.

San Jose remains one of the most expensive markets in the country, still more than triple the national median. Yet the recent dip, combined with rising inventory, gives shoppers slightly more choices and negotiating room than they enjoyed a year ago. Well-priced homes continue to move, but the balance has tilted just enough to matter for families and first-time buyers watching the listings.

For a city whose identity remains tightly linked to technology and global talent, the June numbers mark a noticeable shift. How the market absorbs further changes in employment and immigration will shape both housing costs and the broader vitality of Silicon Valley in the months ahead.

Source: SVBJ

New Research Puts San Jose at the Top of the Minimum-Wage Rent Gap

Fresh numbers from Best Interest and Clever Real Estate lay out a stark picture of housing costs for the lowest-paid full-time workers across America’s largest metros. In San Jose a typical one-bedroom fair-market rent sits at $2,982 a month. A full-time minimum-wage paycheck, calculated at the city’s $18.45 hourly rate, comes in at roughly $2,952. That leaves a $30 shortfall before any other bills arrive.

Under the long-standing 30 percent rule, the same worker could responsibly spend only $886 on housing. The difference between that figure and actual rent reaches $2,096 every month. Closing the gap would require either a far higher wage or the combined paychecks of four minimum-wage earners sharing a single one-bedroom unit. Put another way, one person would need to log about 135 hours a week just to cover the rent alone.

San Jose joins 13 other large metros where monthly rent exceeds an entire minimum-wage paycheck. The city’s high local wage still ranks among the strongest in the country, yet demand driven by tech jobs and limited housing supply keeps rents elevated. The data underscores why many households look for roommates, longer commutes, or dual incomes to stay in the region.

Anyone watching the local market will find these figures useful context for conversations about housing production, wage growth, and the daily arithmetic of living here. The full report in the source link examines all 50 largest metros and offers a clear ranking of where the pressure runs highest.

Source: Best Interest

Japantown Set to Gain New Housing and Taiko Performance Hub

City officials cleared the way for a six-story mixed-use building at 653 North 7th Street that will bring 65 residential units together with a dedicated San Jose Taiko performance space. Staff approval arrived on July 8 and locates the project inside San Jose’s historic Japantown, one of only three remaining Japantowns in the United States.

Shea Properties leads the effort, building on its earlier work with the completed Sixth and Jackson apartments just a block away. The plans include roughly 14,100 square feet of commercial space that will house the Taiko performance building along with an office, workshop, and gallery. The site sits next to a proposed public park, extending outdoor green space and seating areas that stay open to the broader neighborhood.

Taiko San Jose has anchored cultural life in Japantown since 1973. The nonprofit keeps traditional Japanese drumming vibrant through original performances and education that crosses cultures and generations. Placing a permanent performance facility on the block gives the art form a stronger home while adding daily activity to the street.

Designers focused on an activated urban edge where housing and arts meet public space. Residents and visitors alike will share the green areas and seating that offer room to pause outside. The combination of homes and cultural facilities is meant to lift the everyday rhythm of the neighborhood.

San Jose keeps finding ways to honor its historic districts while adding the housing and gathering places that keep them alive. This Japantown project threads new residences and performance energy into an already distinctive corner of the city. It would be amazing to see more local projects in the future seamlessly incorporate arts and culture like this.

Source: The Mercury News

New Eight-Story Apartment Building Planned Near SAP Center

San Jose adds has a new proposed mid-rise development in the Garden-Alameda neighborhood. Plans filed with the city show a new eight-story apartment building at 945 W. Julian St., right at the intersection with Morrison Avenue. The project would replace a house and office that currently occupy the site and bring 136 new units to the area.

The development team, headed by Anthony Ho, envisions a mix of homes suited to different needs. Twenty-eight studios would measure about 360 square feet. Fifty-four one-bedroom apartments would come in at roughly 490 square feet. Another fifty-four two-bedroom units would offer around 730 square feet each. The site covers just under a half acre.

This stretch of Julian Street already hosts the Diridon West apartments, a 249-unit project completed in recent years at the corner of Stockton Avenue. The current proposal would make use of Senate Bill 330 provisions that help expedite housing reviews across California.

Living here would put residents within easy reach of SAP Center events, from hockey games to major concerts. The spot also benefits from connections to regional transit and the broader momentum building around the Diridon station area.

City planning records describe the submission as preliminary. Final designs and details remain subject to change through the review process. Even at this stage, the plans reflect sustained interest in creating more places to call home near one of San Jose's most recognizable landmarks.

Source: The Mercury News

Affordable Housing Will Rise from a Downtown San Jose Parking Lot to Strengthen the Urban Core

A 173-unit affordable housing project slated for a 1.3-acre surface parking lot at 143 South Third Street. The site sits between South Second and Third Streets, steps from the Paseo de San Antonio and the Hammer Theatre Center, where asphalt has long dominated instead of homes.

Sobrato Organization and Pacific West Communities have teamed up on the preliminary plan, which calls for 171 apartments reserved for extremely low, very low, and low-income households plus two market-rate units for on-site managers. The developers intend to use state streamlining provisions under SB 330 to move the project forward efficiently. Once complete, the buildings will house hundreds of new neighbors who will shop, dine, and gather in the surrounding plazas and streets.

Real estate observers have long argued that adding residents to the urban core helps create an authentic downtown over time. Land-use experts have welcomed the prospect of increased daytime and nighttime activity that comes with hundreds more people living right in the heart of the city. The Sobrato firm has owned the parcel since around 2010 and always envisioned high-density housing rather than perpetual parking, a vision now moving closer to reality.

This proposal reflects a broader shift in San Jose toward prioritizing homes over surface lots in the places where density makes the most sense. By delivering deeply affordable units in a walkable, transit-rich location, the project will support local businesses, reduce pressure on surrounding neighborhoods, and contribute to a more complete, equitable, and dynamic Downtown San Jose.

While it is a major downgrade from the high-rise projects originally planned for the site, it will be a big improvement over the empty parking lot in the middle of Downtown San Jose.

Source: The Mercury News

213-Unit Mixed-Use Apartment Project Advances at Former Hotel Site in Buena Vista Near Downtown San Jose

San Jose residents seeking new housing options will celebrate the progress on a 213-unit rental complex proposed for West San Carlos Street in the Buena Vista neighborhood. The site, once eyed for a hotel, now shifts toward homes with ground-floor commercial space.

Plans call for 155 one-bedroom and 58 two-bedroom units, with about 5 percent set aside as affordable housing for low-income households. A modest 1,500 square feet of street-level retail will activate the sidewalk and support local commerce in this transitioning area.

Local South Bay executives own the property and have pivoted from hospitality to residential use, reflecting broader market realities and a clear priority on addressing housing demand. City staff stood ready to grant final approvals, moving the project from concept toward reality.

This development will deliver much-needed rental inventory while weaving commercial activity into the neighborhood fabric. By placing homes and shops together in Midtown, it strengthens walkability, supports small businesses, and contributes to a more complete urban environment that benefits everyone who lives and works in the city.

Source: The Mercury News

San Jose Breaks Ground on First Type 1A Fire-Resistant ADU

Builtech Construction broke ground on an 850-square-foot ADU in San Jose that set a new benchmark for residential fire safety across California. This project became the first in the city built to Type 1A standards, the highest fire-resistance classification available under state building codes, through advanced Insulated Concrete Form technology.

The ICF system stacked lightweight foam blocks like oversized building blocks before crews inserted rebar and poured concrete to create a solid non-combustible core. The resulting walls delivered exceptional protection against fire spread while adding seismic strength, soundproofing, pest resistance, and energy efficiency far beyond traditional wood-frame construction.

The build came together at roughly $350,000, matching costs for conventional methods in the area. Additional features such as fire-resistant windows, a metal roof structure, and fire-rated vents completed the resilient design ready for today’s denser neighborhoods.

ADUs are a key avenue for growing the San Jose housing supply and lowering costs. Any technological advances here will have an amplified impact on our city.

San Jose Moves Forward with Over One Thousand New Homes

San Jose has unlocked substantial progress on housing by approving nearly ten million dollars in incentives for three residential developments. These waivers will help deliver more than one thousand one hundred new units while addressing affordability challenges that many residents face daily.

In Downtown San Jose the Gateway Tower project at 470 South Market Street will introduce two hundred twenty affordable apartments in a fifteen-story structure that also includes ground-floor retail space. Construction starts in May. Nearby the historic Bank of Italy building transforms into one hundred nine apartments, preserving architectural heritage and adding needed homes to the urban core with work beginning in April.

West San Jose gains momentum as well. Sand Hill Property Co. has already launched construction at El Paseo de Saratoga where seven hundred seventy-two units will take shape along the Saratoga corridor. Vertical building is expected to advance soon.

San Jose continues to demonstrate leadership by streamlining costs and encouraging developers to move forward despite broader market pressures. As these projects rise, residents will gain more choices for living spaces that fit their budgets and lives.

Source: SVBJ

99 Affordable Homes Will Rise on South Almaden Near Downtown San Jose

Satellite Affordable Housing Associates will build a nine-story apartment complex with 99 units at 501 South Almaden Avenue. The project will stand right next to the Arya affordable housing development the same team previously completed. SB 35 will enable a speedy approval process that moves the project forward without traditional delays.

All apartments will deliver 100 percent affordable housing. The building will contain 67 studio units, 31 one-bedroom apartments, and one two-bedroom home. This thoughtful mix will support a broad range of households seeking a central San Jose location.

Source: The Mercury News

River Oaks Parkway Prepares for a Vibrant Residential Revival in San Jose

A significant shift is underway along River Oaks Parkway, where a former commercial hub is set to bloom into something far more lively. TPG Angelo Gordon has taken ownership of the property at 211, 251, and 281 River Oaks Parkway in a $45 million deal that signals strong confidence in San Jose's future. Those three buildings, once filled with over 160,000 square feet of office space, now stand ready to make room for a dynamic mix of homes that will reshape daily life in this corner of the city. The approved plan weaves together 505 market-rate apartments in a sleek seven-story structure, 132 affordable units in a five-story building, and 100 townhouses arranged across 14 inviting clusters. This thoughtful blend caters to everyone from young professionals chasing urban energy to families seeking roots in a welcoming setting. With approvals secured last fall, the project feels like a timely breath of fresh air amid the city's ongoing push for more housing options. Nestled right across from River Oaks Park, the site already enjoys a natural edge with green spaces, walking paths, and a neighborhood rhythm that mixes offices and existing homes. Residents will step out to tree-lined streets, nearby services, and the kind of everyday convenience that makes San Jose feel connected and alive. This kind of development adds real momentum to North San Jose, proving that even in challenging economic times, forward-thinking investments can spark genuine progress.
Source: SVBJ

Santa Clara's Record Housing Surge

Santa Clara wrapped up 2025 with an impressive 2,768 new residential units, far surpassing the 155 completions from 2024 and earlier years. Most of these additions came as apartments and condominiums, with a small portion from accessory dwelling units and single-family homes. This wave of development marks a high point for the city, reflecting years of preparation that now deliver much-needed options amid the Bay Area's tight inventory.

The completions stem from projects that locked in financing before interest rates rose sharply. City officials credit efficient planning processes for keeping momentum strong, including detailed neighborhood plans that align with property owners' visions. These efforts streamlined approvals and construction, setting Santa Clara apart in a region where such progress often stalls.

Key activity centered in the Tasman East neighborhood, now known as The Clara District, where a 2018 specific plan transformed industrial land into a high-density, transit-focused area. Projects like AVE Santa Clara, Mainline North, and Ellore contributed significantly, alongside 10 multifamily developments citywide. Two of those focused entirely on affordable housing, supported by builders such as SummerHill, Ensemble, Greystar, and USA Properties.

Looking to 2026, officials anticipate a slower pace as the market absorbs recent additions and navigates past financing challenges. Still, ongoing demand signals steady opportunities ahead, reinforcing Santa Clara's role in addressing regional housing needs.

Source: SVBJ

San Jose Unified's Housing Vision: 288 Apartments for Dedicated Educators

San Jose Unified School District advances plans for a 288-unit apartment complex at 760 Hillsdale Avenue, designed specifically for its employees. This initiative addresses the challenge of providing stable homes for teachers and staff amid rising living expenses. The development occupies a vacant parcel next to Highway 87, creating convenient access for those working in the area's education sector.

The project targets the missing middle group of workers who earn above limits for many subsidized options yet struggle with market rents. District leaders recognize that even top earners face barriers to comfortable living in the city. By converting unused land into residential space, the effort turns underutilized property into a community asset, aligning with San Jose's push to increase housing production.

Funding comes from a $1.15 billion bond approved by voters in November 2024, with $282.5 million allocated here. The site sits adjacent to the district's Silicon Valley Education Campus and near light rail lines, promoting easy commutes and sustainable growth. This setup ensures high-quality builds comparable to private developments, fostering retention of skilled professionals.

As San Jose works toward state-required annual housing targets of over 7,700 units, projects like this help close the gap. The apartments promise to draw and keep talented individuals committed to student success, enhancing San Jose's educational landscape and overall appeal.

For more details on the project, visit https://www.sjusd.org/

Source: The Mercury News

Facchino Neighborhood Breaks Ground for Vibrant Housing Near Berryessa BART

Facchino Neighborhood broke ground on Oct 20th in Berryessa, which will transform a 13-acre industrial site at 1655 Berryessa Road into over 700 residential units. Property owner Bob Facchino personally operated an excavator to begin demolishing the building that once housed his family's trucking business for more than 50 years, calling the moment bittersweet yet necessary for progress. This redevelopment, near the Berryessa BART station that opened in 2020, aligns with plans for an urban village that integrates housing with transit accessibility.

KB Home leads construction on 48 for-sale single-family homes and townhomes, while Swenson develops a 260-unit affordable apartment complex, both set to advance quickly with Swenson aiming for completion in about two years. Additional phases include 338 apartments and 62 more for-sale units, addressing the city's need for diverse living options. A neighborhood park and replacement wetland, mandated after the site's drainage area earned protected status, will add green spaces that enhance community appeal.

This project exemplifies San Jose's shift toward sustainable growth, turning underused land into homes that support families and reduce commutes via nearby public transit. Local leaders gathered at the ceremony to highlight how such initiatives ease housing pressures and foster connected neighborhoods. As construction ramps up, Facchino Neighborhood promises to draw new residents eager for transit-oriented living in the South Bay.

Source: SVBJ

New Townhomes Set to Enhance Cambrian Neighborhood in San Jose

San Jose is advancing its housing initiatives with the completion of the environmental report for a townhome project at 5670 Camden Avenue in the Cambrian area. Developer Mana Camden Fund LLC proposes 108 units spread across 32 structures, transforming baseball fields and green space behind Beacon School into residential spaces. This development leverages the Builder’s Remedy under the Housing Accountability Act for efficient approvals, including 22 deed-restricted low-income affordable units to support diverse community needs.

The irregularly shaped site will feature an internal street network connecting to Camden Avenue and Singletree Way, with ample parking for 243 vehicles and 40 bicycles. Residents can anticipate modern living options that integrate seamlessly into the neighborhood, fostering stronger local connections.

With the Draft Environmental Impact Report now available, the City of San Jose welcomes public input through September 30 to shape the final version. Construction timelines point to about 34 months of work, marking another step in expanding housing opportunities across the city.

Source: SF YIMBY

Misora Apartments Signal Continued Growth at Santana Row

Santana Row stands as a premier destination in San Jose, blending shopping, dining, and living spaces into a vibrant community hub. Federal Realty now plans to market the Misora apartment complex at 388 Santana Row, a 212-unit building completed in 2014 that spans about 222,000 square feet. This move follows the recent sale of the neighboring Levare apartments for $74 million to Hines in May, reflecting strong interest in high-quality residential properties within this sought-after area.

CEO Don Wood described such sales as a core part of the company's strategy, allowing reinvestment into mixed-use environments without affecting the retail and entertainment core. Misora, positioned across from Levare, offers modern living options that complement the lively atmosphere of Santana Row, where residents enjoy walkable access to boutiques, restaurants, and events. If priced similarly per unit to Levare, the complex could fetch upwards of $145 million, underscoring the value of San Jose's real estate market.

This transition opens doors for fresh ownership to enhance the property, potentially introducing new amenities or community features that build on Santana Row's appeal. As San Jose's west side continues to thrive, developments like this reinforce the area's role as a magnet for professionals, families, and visitors seeking a blend of urban convenience and leisure.

Source: SVBJ

Julian Street Studios Poised to Enhance San Jose's Affordable Housing Landscape

A promising addition to San Jose's housing options takes shape with the Julian Street Studios project at 1271-1279 East Julian Street, near the upcoming Little Portugal BART Station. Developers Corporation for Better Housing and JSL Real Estate have acquired the one-acre site for $8.15 million and secured $138.6 million in construction financing, primarily from Banc of California. This seven-story building, designed by Y & M Architects, will rise 85 feet and include 305 apartments, with 303 designated as affordable studios and two units for on-site managers.

The location offers residents easy access to public transit once the BART station opens, connecting them to jobs, schools, and amenities across the Bay Area. This development supports San Jose's growth by providing much-needed affordable homes in a vibrant neighborhood known for its cultural heritage and community spirit. Families and individuals will benefit from stable housing close to local markets, parks, and services in the Little Portugal area.

Construction timelines point to a 17-month build from groundbreaking to completion, marking a step forward in addressing housing demands in Santa Clara County. Projects like this strengthen neighborhoods by increasing density thoughtfully and promoting walkable, transit-oriented living. As San Jose continues to evolve, initiatives such as Julian Street Studios contribute to a more inclusive and accessible city for all.

Source: SF YIMBY

Park Habitat Brings Housing and Innovation to Downtown San Jose

A revised vision for Downtown San Jose emerges with the proposed Park Habitat development at 180 Park Ave., where developer Westbank shifts from an office tower to a mixed-use project featuring 391 housing units alongside a data center. Positioned next to The Tech Interactive museum, this initiative promises to blend residential living with cutting-edge technology, potentially allowing for museum expansion. The setup captures waste heat from the data center to supply low-cost, low-carbon energy to the homes, showcasing smart sustainability in the heart of the city.

This project aligns with efforts to create vibrant, walkable urban spaces, placing residents near Plaza de Cesar Chavez, cultural centers, and transit options. By intermixing housing and tech infrastructure, Park Habitat contributes to a dynamic downtown environment that supports both daily life and economic growth. The added housing aims to increase the nighttime population, fostering a lively atmosphere for shops, restaurants, and events throughout the area.

As demand for data centers rises across the Bay Area, this development strengthens San Jose's position as a hub for innovation while addressing housing needs. With PG&E adapting to growing energy requirements, projects like Park Habitat demonstrate forward-thinking solutions that benefit the community. Residents and visitors can look forward to a more connected and efficient urban landscape, enhancing the appeal of Downtown San Jose as a place to live, work, and explore.

Source: SiliconValley.com

Quick update on Saratoga Ave Master Plan

Today I saw a render that was new (to me) about the plan for Saratoga Ave near Westgate. The plan would allow for 1,620 more homes and 720,000 SQFT of commercial or office space along the corridor. It would essentially fill all of the street parking with higher density development. For more details and to actually participate in the planning process, you can read the relevant part of the District 1 Newsletter below.

Source: District 1 Newsletter - 

The City of San José is planning for its future, and we want your voice to be part of that conversation. 

 

As part of the Envision San José 2040 General Plan, the Urban Village strategy supports the development of housing and job growth in key commercial corridors such as Saratoga Ave. This growth is accompanied with updated policies to promote a complete community that is more walkable, bike-friendly, and transit-connected. Urban Villages are designed to support a healthier, more sustainable city by reducing car dependence, revitalizing underutilized properties, and promoting strong local economies. 

 

Urban Villages are planned intentionally to include a mix of housing types, employment options, and amenities such as places to gather. They are a key part of the 2040 General Plan to create better connected neighborhoods that address pressing priorities in housing affordability and environmental resilience. Urban Villages were carefully selected to support San José’s long-term environmental, fiscal, and transportation goals while respecting the existing character of established single-family neighborhoods. 

 

City staff and our office are currently sharing early draft concepts for the Saratoga Urban Village Plan. We are working to gather as much community feedback as possible from residents, neighbors, tenants, property owners, and business owners. 

If you live, work, or spend time in the area, we want to hear from you. Your input and participation will help shape the future of land use, housing, transportation, open space, and amenities in this vital part of West San José. 

 

Please take a few minutes to fill out the survey on the draft concepts: 

 

Simplified Chinese: https://docs.google.com/forms/d/e/1FAIpQLSdGpBEPc56C3u9WK2ErpFZBAY3QVBNN1H2wqSX5KpRCHSCGtA/viewform?usp=header

 

Spanish:

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English: https://docs.google.com/forms/d/e/1FAIpQLSfTiDLN3oXV7NfWygYsYRAdecUxNm9hWFwxhlBkFJcpJeNB6Q/viewform?usp=header

New Affordable Homes Set to Transform San Jose’s Housing Landscape

San Jose is taking a significant step toward addressing its housing needs with a new affordable housing development that’s ready to break ground. This project, located on a 0.97-acre site, will bring 158 rent-restricted units to the city, offering a mix of studios, one-, two-, and three-bedroom apartments, along with two manager’s units. This development is a vital addition to San Jose’s ongoing efforts to provide accessible housing options for residents across various income levels, reinforcing the city’s commitment to inclusive growth.

The project’s approval comes with secured construction financing, a critical milestone that ensures its progress. This development will rise as a five-story building, designed to maximize space while creating a welcoming community for future residents. By focusing on affordability, San Jose is making strides to ensure that teachers, healthcare workers, and other essential professionals can live closer to where they work, fostering stronger community ties and reducing commute times.

This housing initiative is part of a broader wave of development activity in San Jose. From Downtown to the city’s outer neighborhoods, new projects are reshaping the urban landscape. The focus on affordable housing aligns with the city’s vision to balance growth with accessibility, ensuring that San Jose remains a place where people from all walks of life can thrive. The addition of these units will help ease the pressure on the local housing market, offering relief to those struggling to find affordable options in a competitive region.

The timing of this project couldn’t be better, as San Jose continues to attract new residents and businesses. With its proximity to major tech hubs and a thriving Downtown, the city is well-positioned to support a growing population. Affordable housing developments like this one ensure that San Jose remains a welcoming destination for families, young professionals, and seniors alike, all while maintaining its reputation as a hub of innovation and opportunity.

Source: SiliconValley.com