Silicon Valley retirement can be challenging for those already living in the San Francisco Bay Area, but it’s even more challenging for those hoping to spend their Golden Years here if they are coming from a less expensive area. Today I want to give some info on:
- what does it cost to buy a home here (typical retirement size home)
- what are typical HOA dues
- what are typical property taxes
- what are some of the housing options that retirees or seniors have when relocating to Silicon Valley?
Silicon Valley retirement: what a modest home costs to buy here
The average sale price of a condominium in Santa Clara County is over $1 million (and it’s even more in San Mateo County), and that includes the range from most pricey to most affordable (and often most remote) locations. In most of the Unites States, a million dollars will get you a high end house on a comfortable lot. Houses are averaging around $2 million, so that is out of the question for the majority of retirees who move here from out of the area.
If a family member wants to come here to retire, most likely he or she will want to pay cash for a home so that there is no mortgage payment in retirement. If the budget is $1 million or less, that’s likely to mean purchasing a condo or perhaps a townhouse. In Santa Clara County, here’s where the money would go furthest:
A 2 bedroom, 2 bath unit…
Silicon Valley retirement costs will be vastly different between Palo Alto and Gilroy. San Jose will generally be more affordable than most of the rest of Santa Clara County except for the “South County” areas of Morgan Hill, San Martin, and Gilroy. San Jose is home to about a million people, and it has more and less expensive areas, of course.
The average sale price of a 2 bedroom, 2 bath condominium in San Jose in the last 30 days was $748,797. The average square footage was 1160 SF,
Silicon Valley’s rush hour traffic can begin as early as 6:45 or 7 am and last until 9 or 9:30am most workdays. The evening commute begins to get congested around 3 or 3:30pm with a knot of traffic in place by 5pm and lasting until around 6:30 or 7pm on some roads.
Looking for a reverse commute? Many commuters do precisely that!
If you work in Scotts Valley (just “over the hill” in Santa Cruz County), living in Los Gatos, Campbell, Cambrian Park or West San Jose will be a reverse commute for you. You’ll be going against the flow of traffic and your commute will be immensely easier.
Ditto that if you work in the south San Jose or Edendale region and begin your commute in Almaden Valley. Once you get to 85, it will be a breeze!
Work in Gilroy? Living in Blossom Valley or Almaden, you can engineer a reverse commute on the back roads or take Santa Teresa Blvd going south.
Most employees and workers try to carpool, take light rail, or otherwise beat the rush by using tricks of timing or alternate routes to avoid spending twice as much time on the road as necessary. Many companies have flexible hours – it’s worth investigating to see if you can shorten the length of your time in the car!
Relocation to Silicon Valley can be a bit of a shock to people in terms of the traffic and commute times if they are not accostomed to suburban living (which is most of the valley). Typical commute times are about 30 minutes, though some people have longer or shorter commutes, of course.
Traffic moves toward downtown San Jose primarily along Highways 87, 680 and 280 and toward the Cupertino – Sunnyvale – Mountain View areas along Highway 85 (and 280). Bringing traffic in from the south county is 101. Other roads getting a lot of use too are 17 and 880 (same road, different stretches), San Tomas Expressway, Montague Expressway, Lawrence Expressway, Santa Teresa Boulevard, Saratoga-Sunnyvale Road, Stevens Creek Blvd. and Almaden Expressway.
In Silicon Valley, or Santa Clara County, we have a relationship between city or town boundaries and school district boundaries that is unusual compared to most parts of the country. They just don’t always line up!
I blogged about this at my Live in Los Gatos blog awhile ago and thought this would be helpful information here for anyone relocating to SIlicon Valley:
So if you are thinking of moving to the Santa Clara Valley, it’s a good idea to get a school district boundary map in hand. Even if you don’t have kids, it’s important to understand that schools drive home values – so it matters to you whether or not you have children!