What can you buy for $1 million in Silicon Valley?

With soaring housing prices in Silicon Valley, newcomers and folks potentially relocating here may wonder what can you buy for $1 million or less in Silicon Valley? This article will provide a snapshot in time and provide a sense of whether your million dollar budget can get you into a house, a townhouse, or a condo – or perhaps “none of the above” – on the valley floor.

(Homes in the Los Gatos or Santa Cruz Mountains are generally more affordable, but will of course be farther out and are generally considered a specialty market. Not included will be mobile homes, as the space rents are often close to or more than $1,000 per month. Also not included are duplexes, which you’d be hard pressed to find many of under that $1 million mark.)

If you absolutely must buy a house, and the budget must be under $1 million…

If you absolutely must have a house or single family home, as opposed to a condominium or townhouse, there are a number of areas for you to consider in Santa Clara County, including

  • Gilroy
  • Morgan Hill
  • Milpitas
  • Certain districts in San Jose
    • Alum Rock
    • South San Jose
    • Evergreen
    • Berryessa
    • Downtown and Central San Jose
    • Santa Teresa
    • and Alviso (including County pockets)
  • the Los Gatos 95033 (mountains) area – which is vast and contains many small communities

The Los Gatos mountains area varies in price from one community to the next and right now that is a hopping market, I’m told. You can find information, including a list of mountain neighborhoods, on the page linked as well as the occasional market update. If you’re interested in buying or selling a mountain home here in the Bay Area, please reach out! I do some work in the mountains, and if it’s not a match I am happy to connect nice folks with trusted Realtors that are mountain market specialists.

To determine where someone could get into a house for under $1,000,000, I pulled the sales from the last 90 days (as of August 31, 2021) and looked at how many of the sales of houses for any given area were under that budget amount.  In many places, there were zero – even if I looked back a full year!  The areas below are listed in order of the average sale price for these “in budget” properties, though you might prefer to rank them by the average square footage or some other criteria.

Silicon Valley homes for under $1 million: houses

(Trouble reading the image above? Click to view the full-sized photo.)

This doesn’t mean you can’t find something under $1mil elsewhere. San Jose’s Almaden Valley, Willow Glen, and Cambrian areas each had one sale under the million-dollar mark during the same time period, but these sales are significantly less common. When you see ratios of something like 3% or less of the houses sold are under that price point, it’s important to understand that those homes may be major fixer uppers, tear downs, or have a location issue or some other big challenge. But – perhaps you are handy, do not mind the property condition, location, extremely small size, or whatever the presenting issue may be.

Areas in Santa Clara County where a house is possible but unlikely, but a townhouse or condominium may work:

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Cost of living calculator

Today I discovered a cost of living calculator on the MoneyGeek website and thought my readers may find it helpful, whether living here and thinking of retiring somewhere cheaper OR living somewhere less expensive and considering a move here. MoneyGeek includes San Jose in its list of cities, which other sites, such as Nerd Wallet, omit.

https://www.moneygeek.com/cost-of-living-calculator/

This seems to work best between large cities. When I tried to compare the cost of living in San Jose against other California cities or towns, the full info only came up in more populated areas. Give it a spin and see if it’s helpful!

Another good cost of living calculator can be found on the SmartAsset site, and this one factors in taxation:

https://smartasset.com/mortgage/cost-of-living-calculator

 

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. From the heavy hitters like Google and Intel to the many fresh startups, 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, Honduran? Check, check, check. You name it, we seem to have it, whether it’s Middle Eastern, African, Asian, Pacific Islands, or European, there’s something for everyone. (OK I haven’t yet seen an Australian restaurant, but I also don’t know what counts as classic Australian cuisine other than Vegemite sandwiches and barbecues.)

Additionally, there are 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. We’re talking 300 sunny days a year. This January we hit 70F one day, which is not unusual. 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. There are weekend farmers markets open all year! 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.) Minutes away, take a little trek around the valley’s mountains and hills, which are full of open space preserves, county, and local parks which make for a great escape from the hustle and bustle of the valley floor.

Moving might mean 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 for those who buy here 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, now more than ever, but as long as huge companies continue to hire, there’s no reason to think that real estate won’t be a wise investment.

Relocating from San Francisco to Silicon Valley

Coit Tower in San Francisco

Coit Tower in San Francisco

How hard could relocating from San Francisco to Silicon Valley be? It’s the same time zone, the same “San Francisco Bay Area” region, and depending on which part of Silicon Valley you target, the drive time could be all of 20 minutes – or perhaps well over an hour.

Relocating from San Francisco to Silicon Valley can be a little bit of a culture shock, which is surprising given the close proximity of the two areas.  What’s so different?

(1) Most noticeably, the scenery is different.

You won’t be seeing the Golden Gate Bridge,  facing frighteningly steep hills, or catching a view of the Pacific Ocean from the Cliff House when you’re in Silicon Valley. Nob Hill, the Wharf, Ghirardelli Square, Union Square, Market Street, Mission Dolores, the SOMA district and so many other colorful parts of the city will be places you visit on weekends rather than drop in on some evening for supper. The scenic beauty of San Francisco may be the thing you will miss the most if you move out of that fabled city.

Beauty isn’t absent from Silicon Valley, though!  There are views of the San Francisco Bay in many places (Foster City and Redwood Shores especially).  Scenic vistas of the beautiful Santa Cruz Mountains can be enjoyed from many locations in the South Bay, especially Los Altos, Cupertino, Saratoga, Los Gatos, and the Almaden Valley in San Jose. Part of Silicon Valley reaches into North San Jose, Milpitas, and Fremont, where views of the eastern foothills can be quite lovely, too.  Some of these communities have a high elevation and can see the bay as well as the valley.

San Mateo County - Crystal Springs path by water

San Mateo County – Crystal Springs path by water

If you are relocating from San Francisco to Silicon Valley, you’ll want to be outdoors more and enjoy the many open spaces available to you. Parks and hiking areas abound on the Peninsula and in Santa Clara County. For example, you’ve probably driven past Crystal Springs Reservoir many times- but did you know that you can hike there?  Santa Clara County has a network of trails following various creeks.  The Los Gatos Creek Trail (with some adjacent percolation ponds) runs from Lexington Reservoir down into the valley, stopping at Meridian Avenue. There are also trails around parts of the bay – and eventually trails should ring the whole SF Bay Area, but that may take quite awhile.

At Vasona Lake County Park in Los Gatos you can rent a paddle boat and roam the lake in style! Or how about sauntering on horseback in the low foothills of Saratoga at Garrod’s? A day at Filoli in Woodside is always good for the soul – lovely places to walk around both outdoors and in. (Really spectacular during the holidays, too.)

Got wine?  You’ll get great views if you take in some wine tasting in Saratoga (several spots, also at Cooper-Garrod’s if you want to sip wine after riding horses) or Cupertino at Ridge Vineyards, too. There are dozens of wineries in Silicon Valley, including J Lohr near the San Jose airport.

Lovely sights are bountiful in The Valley(more…)

What are the usual open house times in Silicon Valley?

Open House signs when to whenIf you are house hunting in Silicon Valley and new to the area, you may wonder when the usual open house times are. Unfortunately, open house times are not perfectly predictable as there is variation both from one brokerage or agent to the next and one region of the counties that comprise Silicon Valley to the next as well. As an example, in the Blossom Valley area of San Jose, condos or houses are frequently available for viewing between 1:30 and 4:30, but it’s not a rule – some listings may have a totally different schedule!

In general, most open houses will be available between 2 and 4 on weekend days if advertised as open (sometimes Saturday, sometimes Sunday, sometimes both. Open houses can run from 12-5, 2-4, 1-4, 1:30 – 4:30, 2-5 etc. If you arrive between 2 and 4 (not “at” 4), you are likely to find it open if it’s advertised as such.  Some real estate agents may hold it open sooner or later, though. If a Realtor has a couple of properties that need to be held open for the public, one could be from 11-1 and the other from 3-5 or some such schedule.

The broker open house is usually not intended for the public, but for agents to show listings to other agents who are looking for their clients. Occasionally (more frequently now than before), the home is open to the public to view. Broker open home tours take place on weekday mornings, typically Wednesday, between approximately 9:30am and 12:30pm.  If non real estate professionals (the public) are welcome, it will be advertised on our MLS, so check online or with your agent.

It is always best to check online at www.MLSListings.com for the most accurate schedule for open houses, which may be during weekday mornings, twilight tours, or weekend afternoons or mornings.

Finally, do not count on all properties listed for sale in Santa Clara or San Mateo Counties to necessarily be available for viewing at an open house. Some listing agents and some sellers prefer NO open houses, believing that any qualified buyer who’s serious will be working with a buyer’s agent and can make an appointment to see it privately. (This is yet another reason why every buyer should have his or her own real estate agent rather than planning to work with the listing agent when buying their next home.)

Moving to Silicon Valley in fall or winter? A few things to know.

Winter Arrival Graphic - says "Winter Arrival"If you are moving to Silicon Valley, whether San Mateo or Santa Clara County, you should know that things are a little different in fall and winter than they are in spring and summer.  Here are just a few areas that might not be intuitively obvious to the newcomers.

First, a word on appearance.  In Santa Clara County, we have two primary sets of hills – one closer to the Pacific Ocean and Monterey Bay (west side), and one closer to central California (east side).  Because our local weather is dominated in very large part by the Pacific Ocean, much of the weather blows in from the coast.  A lot of the rain gets dumped in the coastal range, also known as the Santa Cruz Mountains.  Less makes it all the way to Los Gatos, less still to downtown San Jose, and a much smaller amount to the east foothills and places such as Alum Rock Park.  The coastal range (also called just “the hill” by locals) is green year round as it is full of redwoods and other trees which love the moisture. The east side, though, is more grassy, fewer trees, and gets far less rain.  In winter the grasses are a lovely green.  With drought or in summer, however, the grass turns brown or pale yellow.

For people coming from the east coast, the hills there are more likely green in summer and brown in winter.  Here, though, it is the opposite.  We don’t usually get rain in summer, so the grasses die and the hills go brown.

Rain, when we get normal patterns, usually begins in November and comes and goes between then and late April.  In a typical year, San Jose gets 15-20″ of rain (Los Gatos more, the Los Gatos Mountains much much more).  If we get an El Nino pattern year, temps will be warmer than usual and rain will be much more common than typical.  It’s not much fun to have an El Nino year, but right now we desperately need the rain, so folks here are all hoping for it.

Second, a word on roads and travel.  Silicon Valley enjoys a sub-tropical climate with mild temperatures and not too much rain, even in a normal year.  With very little rain most of the time, our streets and highways can develop a dusty, oily film.  Whenever we get rain after a dry spell, those highways and roads can be slicker than you might expect.  It’s not that we need a ton of rain for the surfaces to become more slippery, either.  A very small amount of precipitation can do the trick, so be careful!

If your destination requires going over “the hill”, be triply careful!  Too many people, whether regular commuters or first time adventurers, either tailgate or drive too fast, and it can make it too easy for accidents to happen when a little weather is added into the mix. (more…)