Relocation

The shock of Silicon Valley housing costs: how little you can buy on a huge income

If you’ve just been hired as a high level executive at Apple, Google, Microsoft or any other high tech or biotech firm in Silicon Valley, you may be coming to the San Francisco Bay Area and Silicon Valley from an enormous home (5000+ square feet) on an enormous lot (1 acre +).  You are a raging success.  You are highly regarded.  You are on the top of your game.  Your house “back home” displays your accomplishments.

You’ve heard that prices are bad here, but how much worse could they really be? Surely you could downsize a bit to a 3000 to 3500 square foot house on a half acre with a 20 minute commute, right?  And you’d still have great schools for “resale value”, right?   You are prepared to give up the full basement, the pool and tennis court and the 4 car garage.  That is enough of an adjustment, isn’t it?

No, I’m sorry to say, it isn’t.

That house you are leaving behind in the suburbs of New York, Connecticut, Massachusetts, Chicago, Denver, Miami, Seattle, San Diego, or wherever you’re coming from is a super high end luxury home.  It’s probably worth $1,500,000 to $2,000,000.  But guess what?  Here, in a nice area, that’s a 2000 SF house on a 10,000 lot in a good area that’s a tear down.  And in traffic, it’s a 40 minute commute.  Want an acre in an area with really good public schools at all levels? Think $3 million plus.  And that doesn’t mean that the house will be turn-key.  You will very likely have to remodel or personalize so that you are happy with it, as most of our houses were built between the 1960s and 1980s.  (Here a 25 year old home is considered relatively young.)

Why make the sacrifice to live in Silicon Valley?

Why on earth should you move here to the San Jose area when real estate prices are so insanely high? Santa Clara County is bad, and San Mateo County is worse.  Why would anyone make that kind of sacrifice in living space and prestige?

First, because this is a great place to live because of who’s here.  Great minds have coalesced here.  The spirit of entrepreneurship is alive and well and imbues much of the culture here.  Diversity reigns – fabulous people have converged here from all corners of the earth, bringing with them a richness and vibrancy that is appreciated across the area.  Want Ethiopian food? No problem.  Thai? Easy.  Korean, French, Honruran? Check, check, check.  You name it, we seem to have it, whether it’s middle eastern, African, Asian or European, there’s something for everyone. (OK I haven’t yet seen an Australian restaurant, but I’m not sure that food from there is any better regarded than that from England. But generally, you get my drift.)

Additionally, and part of who’s here, we have a number of great universities in the region: Stanford, UC Berkeley, UCSF (for medical), Santa Clara University, San Jose State, UC Santa Cruz (math, marine biology, astronomy and more).

Second, this is a fantastic place to live because the weather encourages a life where you’re not confined to your house and dependent on a big basement.  Listen: 300 sunny days a year.  As I write this in late January 2015, we had a 75 degree day.  Back in the midwest or northeast, they have beautiful snow. Snow for months and months and months. Yes, it’s lovely, but doesn’t it get old?  Here people are golfing, sailing, biking, hiking year round.  Want snow? No problem, drive to Yosemite, Bear Valley or Tahoe.  Enjoy the snow for the weekend – then drive home to the land of palm trees!

Third, this is an exceptional place to live because of what’s nearby.   Within an hour or two we have San Francisco, the Monterey Peninsula and Carmel, Napa and Sonoma Valleys (wine country).  Within 3-5 hours we enjoy Yosemite, Lake Tahoe, Santa Barbara and much of the California Coast.  (California has an incredible array of climates and a diversity of agriculture and economy seldom seen anywhere.)

Moving here means giving up the palatial house and garden and realizing that your accomplishments are simply not going to be reflected in a ginormous house and yard.   The house and yard are often more reflective of when you bought rather than how you were able to buy.

The good news is that Silicon Valley continues to expand and be in demand.  Hiring is strong.  Economically, tech is leading the way and this area was one of the first to emerge from the Great Recession.   Prices are tough to swallow, but as long as huge companies continue to hire, there’s no reason to think that real estate won’t be a wise investment.

Which Silicon Valley areas are the most European feeling?

Beckwith Building in downtown Los Gatos, California

The beautiful Beckwith Building in downtown Los Gatos, California

I have been fortunate to have made 5 trips to Europe, one of them lasting 9 months, and will be returning again before the end of 2013 (this time to Belgium).  It is so diverse, beautiful and compelling! Having experienced a little culture shock myself (when living in Florence, Italy, for one year of university), I’m very sympathetic about how hard an international move can be, and I understand that for Europeans moving to Silicon Valley, there can be an acute culture shock, particularly for those coming from more rural areas.

The bulk of Silicon Valley is located in Santa Clara County, which is at the southern end of the San Francisco Bay.  In this county, there are approximately 1.8 million people, almost a million of them in the city of San Jose.  Some areas, or districts, of San Jose have a distinctive character and are almost like towns or small cities themselves.  So in this article I’ll mention both cities and towns, but also areas or districts of San Jose, which might appeal to our European transplants.   Most of my comments will reference Santa Clara County or “south bay” locations, but I will also mention others on the San Francisco Peninsula and SF Bay Area too.

Architecture, Urban Centers and Charm

It is an unfortunate negative in Silicon Valley that much of our housing consists of ranch style tract homes, and truthfully, they are not exactly a work of art.  New or newer homes tend to be on very tiny parcels of land (or “lots”) and for many people may simply feel too congested or crowded. But there are beautiful residential neighborhoods – you just need to know where to look!  In many ways, the areas with higher charm can make our global home buyers feel more comfortable than if they were faced with only track, ranch neighborhoods.

Do you value unique, older architecture with Victorian, Craftsman, Tudor or other home styles? Then check out these areas:

  • Within San Jose: the Japantown, Vendome, and Naglee Park areas of downtown San Jose. Also in central San Jose are the Rosegarden, Shasta Hanchett and Burbank neighborhoods which all boast some lovely older homes.  Or, if you love classic Spanish Revival style homes with views, consider the old Alum Rock area of San Jose near the country club (golf course).  The Willow Glen area of SJ (zip code 95120) is full of lovely old established neighborhoods with historic homes and tree lined streets.  If your job takes you to downtown San Jose, all of these areas will be fairly close.
  • If you want a rural, eclectic atmosphere, check out the “New Almaden” area of San Jose.  This is actually a county pocket with a San Jose mailing address.
  • Other towns or cities with older, more interesting architecture include the “downtown” ares of Los Altos, Palo Alto, Los Gatos, Campbell, Mountain View, Saratoga and Menlo Park (in San Mateo County, just north of Palo Alto).
  • If work will be on The Peninsula, there are many areas nearby that may work.  San Mateo has some fantastic neighborhoods!  Also San Francisco, which is tiny but full of beautiful areas, may be a strong draw (I do not sell there – it’s too far for me).   Warning: the weather in San Francisco is very often COLD in summer!
  • Across the bay, Berkeley has some great Victorian and other homes and several really interesting pockets, as does parts of Oakland.  (I do not work these areas either as they are too far for me, but I did live in Berkeley in graduate school and can connect you with a great agent there.)
If what you want is a “walk to town“, urban experience, many of the areas above will work for you.  Additionally, there are a couple of more recently built areas that might appeal to you – Santana Row in San Jose (along the Santa Clara border) or the Rivermark area of Santa Clara off of highway 237, close to the bay.
Mary Pope-Handy
Realtor,
CIPS, CRS, ABR, SRES
Sereno Group
214 Los Gatos-Saratoga Rd.
Los Gatos CA 95030
[Silicon Valley, California, USA]
1-408-204-7673
mary (at) popehandy.com
CA BRE # 01153805

CIPS - Certified International Property Specialist
CRS - Certified Residential Specialist
ABR - Accredited Buyer Representative
SRES - Seniors Real Estate Specialist

Helping nice folks to buy and sell homes in Silicon Valley since 1993. Mary Pope-Handy, Realtor, Silicon Valley
Mary’s Other Sites


popehandy.com
Silicon Valley Real Estate: San Mateo, Santa Clara, Santa Cruz Counties, and especially
Los Gatos real estate

ValleyOfHeartsDelight.com
Santa Clara County Real Estate


SanJoseRealEstate
LosGatosHomes.com

Real estate in Santa Clara County, focused on west side communities of San Jose, Los Gatos, Saratoga, Campbell & nearby

Live in Los Gatos blog
Los Gatos neighborhoods, real estate, events, history, parks, businesses & more

Connect with Mary
Follow Mary on FacebookFollow Mary on TwitterFollow Mary on TwitterFollow Mary on YouTube

Please find many more icons for connecting socially at the very bottom of this page.

Listings by Price Range
Below please find a list of SOME of the popular Silicon Valley areas with listings offered by price range. This is not a complete list! Please use the "search" app to find ALL properties on the MLS.
Trends & Statistics

Click the link below to get real estate data for Santa Clara County, San Mateo County, and Santa Cruz County (together making up about 98% of "Silicon Valley").

Real Estate Market Statistics and Trends for Santa Clara County


Comps near any address in Santa Clara County
Listings and Sales Near Any Address in Santa Clara County

Site Statistics
  • Users online: 1 
  • Visitors today : 729
  • Page views today : 863