Frequently, people new to Silicon Valley and the San Jose area arrive expecting to find new homes like the ones they left behind. But in reality that’s just not the norm in this market!
Unless you are looking to purchase a condominium or a townhome, or are looking at areas with very long commutes, it can be challenging to find truly new homes for sale here.
Finding New Homes in Silicon Valley
For the most part, Silicon Valley had a post World War II housing boom that stretched primarily from the 50s into the 70s. By the 1980s, most open space in the Valley was gone.
Today we’ll provide a few quick graphics to give you a Silicon Valley pricing snapshot on the counties where we sell homes. These will be ranked by the usual order of housing cost, from highest to lowest. (Sometimes they move “out of order”.) After that, we’ll provide more resources from our other sites and blogs with a deeper dive on our main Silicon Valley real estate markets. We don’t cover all 9 of the San Francisco Bay Area counties, but here you’ll find 3 of them covered, and it’s a pretty good primer on the Bay Area housing market analysis.
Silicon Valley Pricing Snapshots
San Mateo County
San Mateo County is “The Peninsula”, the county just south of San Francisco and north of Santa Clara County and Santa Cruz County. About a quarter of Silicon Valley is in this area, generally. It’s normally more expensive than Santa Clara County, but once in awhile those two areas flip for pricing order. It’s a hot market in San Mateo County!
For three of these counties, we have a newsletter with info by city. The data from Sereno (above) is a little different from the RE Report data for the median sale price.
Santa Clara County
Santa Clara County, our home base, is the second priciest area in this region and is the heart of Silicon Valley:
And the city by city market stats (much closer aligned for this county between the two data sets):
We also do monthly market updates on communities within the Santa Clara County and more on our other blogs. Check out some of those market reports through the link.
What does it cost to buy a single family home in the city of San Jose? There are many San Jose districts and their values vary by about 2-to-1 from the highest to lowest priced areas in this large, sprawling city with about 1,000,000 residents.
In this article we’ll take a look at the main, fairly well defined districts and discuss the cost of purchasing a house in each one. After each small description, there’s a link to a post on my popehandy.com website for that area.
You can also find relevant information on my Valley of Heart’s Delight blog, SanJoseRealEstateLosGatosHomes.com – just click on the “Neighborhoods” link.
Lastly, if you’d like to see a map of where these parts of SJ are located, please click on this link to find this article with a helpful map: San Jose is big and sprawling: where are the districts?
The Silicon Valley real estate market is notoriously expensive. It isn’t easy, but you can find a Silicon Valley house for under $1 million – if you are willing to drive a little further to those tech centers.
Today I did a quick search and found that it’s not too hard to find a 3 bedroom, 2 bath house with at least 1200 square feet in the south county and very scenic communities of Gilroy, San Martin, and Morgan Hill. Other possibilities are in the Santa Cruz or Los Gatos Mountains, south San Jose, Evergreen, and parts of east San Jose – among others. Here’s a map showing houses recently sold with the above listed minimum criteria within the last 90 days.
Most likely areas for finding a Silicon Valley house for under $1 million
The map above shows sales within the greater area many would consider Silicon Valley, but if you’re looking strictly in South Bay, check the map below which shows hits from a similar search in December 2020.
Back in the 1960’s, when I was growing up in Santa Clara, air conditioning was considered a luxury. I didn’t know anyone who had it in their homes in the immediate San Jose area. Hot days often weren’t too terrible, and if they were, we’d find our way to a pool, the beach, or a restaurant, library, or theater with A/C. Besides, as locals would insist, “it’s a dry heat”.
Over the last few decades, though, central forced air conditioning has become more mainstream. I do believe that Silicon Valley has grown hotter in recent years and it’s less and less of a reasonable option to go without it for most home buyers.
How common is air conditioning in Silicon Valley?
Today I looked on the multiple listing service to get a sense of how common central air conditioning is in Silicon Valley homes. Here’s what I found:
Single family homes or houses for sale in Santa Clara County (home to about 1.9 million people) = 743
Of these, houses with central forced air conditioning = 457 (61.5%)
Houses with central forced air – gas = 0
With ceiling fans = 121
With wall or window units = 18
With whole house or attic fan = 17
With multi-zone cooling = 88
“Other” cooling listed = 28
No cooling of any kind = 172 (23.1%)
There may be overlap in some fields. Interesting to see that 23% had no fans or cooling listed at all and that at least 61.5% but possibly as much as 66.5% (if including multi-zone and “other”) do have central forced air. If you are house hunting in the San Jose area, it’s important to realize that at least 23% of the homes on the market will not have any A/C.
And from 2016:
Single family homes or houses for sale in Santa Clara County (home to about 1.9 million people) = 1408
Of these, houses with central forced air conditioning = 891 (63%)
Houses with central forced air – gas (could be overlapping with the group above but if combined it’s 1010) = 119
With ceiling fans = 254
With wall or window units = 4
With whole house fan = 33
No cooling of any kind = 298 (21.1%)
In just 7 years the percentages of homes listed for sale with central A/C or with no cooling haven’t changed much, however we are seeing more homes with alternative cooling advertised. This may indicate an increase in buyer interest in this feature.
How necessary is air conditioning in the San Francisco Bay Area?
This has always been the old debate: “do we really need air conditioning?” Like many things, that depends. microclimates can have a huge impact on weather.