Remarkable Reasons that San Jose Real Estate is Surging Now

With its beautiful natural scenery, booming economy and top-tier educational system, San Jose, California continues to appeal to home buyers across the country. The steady influx of newcomers to the area has created a high demand for quality housing. Houses on the market typically sell quickly, with 34 days being the average turnaround time for most sellers. Let’s explore some of the key reasons behind the current (and on-going) San Jose real estate surge.

Tech Industry Strength

San Jose is home to numerous tech companies, most of which serve as the area’s primary employers. These companies include Google, Apple and Facebook. They also include eBay, IBM and PayPal – and countless others, large and small, whose names might not often be in the headlines or common in your household, but often employ hundreds or thousands of people with well-paying jobs.

People who accept jobs with these companies drive the demand for housing in San Jose. People who list their houses for sale often only have to wait for a matter of weeks, if not days, for someone to make an offer on and buy their homes.

High Salaries

Tech companies, along with employers like Kaiser Permanente and Cisco Systems, offer some of the highest salaries found anywhere in the U.S. The average yearly salary sits at $114,000, significantly higher than the national average of $77,000 a year.

The high salaries allow people to buy homes more easily. Homeowners could receive close to, if not all, of the asking price for which they list their homes on the market.

Job Opportunities

San Jose is home to the most competitive job market in the U.S. and the second most competitive job market in the world. The number of applicants averages 153.77 per job, up from just over 107 per job in 2023.

The lure of high-paying, secure jobs continues to drive people to San Jose. Economists expect the local job market to grow as the tech industry expands and evolves.

Return to Office Mandates

Return-to-office (RTO) mandates in Silicon Valley are driving a renewed interest in living closer to workplace hubs, with San Jose seeing a noticeable uptick in demand. As tech giants and other employers require more in-person collaboration, workers are seeking homes nearer to their offices to avoid long commutes. San Jose’s central location, proximity to major employers, and diverse housing options make it a top choice for those returning to the area. This trend is also revitalizing neighborhoods, boosting local businesses, and increasing demand for both rentals and homes for sale.

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Low Inventory

The current low inventory of homes makes the real estate market very lucrative for people wanting to list and sell their homes. The tight market has led to increased competition, as well as higher prices.

The average sale price for a home in San Jose sits at more than $1.7 million. Most homes sell in as few as 34 days, allowing home sellers, especially retirees and people wanting to downsize fast turnaround times.

Ideal Location

San Jose sits about 40 minutes away from a variety of scenic beaches, with miles of sandy shores to be found just a few miles south in Santa Cruz. Additionally, the city offers numerous parks and trails for residents to enjoy.

And don’t forget San Jose is also only about 40 minutes from the famously gorgeous and endlessly fascinating city of San Francisco, the famed wine growing regions of Napa and and Sonoma Counties, and only a 4-5 hour drive from many of the best ski resorts in California.

These include Almaden Quicksilver County Park, Circle of Palms Plaza, Happy Hollow Park & Zoo and Martial Cottle Park. Local landmarks in San Jose include the Cathedral Basilica of St. Joseph, Mexican Heritage Plaza, the San Jose Electric Light Tower and Peralta Adobe.

Quality of Life

San Jose has one of the highest qualities of life found anywhere in the U.S. People who live here have access to excellent amenities, including world-class hospitals and medical facilities. They also have their pick of high-quality public and private schools for their children, as well as nationally-ranked universities like San Jose State University and numerous community colleges like De Anza College in nearby Cupertino.

Residents can enjoy walking downtown San Jose on the weekends for shopping and dining. They can also explore the Winchester Mystery House or go bargain hunting at the San Jose flea market for unique finds.

Good Weather

San Jose has some of the most agreeable weather in the country. Average highs in the summer months top 80 degrees. During the fall and winter months, temperatures range from the mid-50s to low-70s.

Further, the city has relatively few rainy days during the spring and summer months. During the winter and fall, the city averages between eight to 10 rainy days a month.

Cultural Diversity

Newcomers to the city will find a culturally diverse population. About 23 percent of the population identify as Caucasian, while 31 percent identify as Hispanic.

Thirty-eight percent of the population claims Asian heritage while two to three percent identify as black or mixed race. Other races found in the population in San Jose include Pacific Islander and Native American.

In my work, I encounter many people – often high net worth or well-paid professionals, who would never consider leaving the San Jose area, simply for the rich diversity of people, foods, art, and culture.  In this respect, San Jose is very hard to beat – especially when coupled with the amazing weather and unrivaled opportunities that Silicon Valley has to offer.

Transportation

San Jose has one of the best transportation infrastructures in the country. This infrastructure features a combination of both highways and public transit options, making commuting easier for people who move and live here. Many public transportation companies also use green initiatives, allowing San Jose to rank sixth in the country for environmental friendliness.

The Valley Transit Authority (VTA) provides most of the public transit options (including light rail), although BART (Bay Area Rapid Transit) is scheduled to open its first stations in 2037 (it’ll be here before you know it, trust me!).  San Jose’s Diridon Station offers rail connections throughout the state of California and to the rest of the United States.

San Jose also has Mineta International Airport, which offers daily flights throughout the United States as well as non-stop international flights to Mexico and Japan.

Investment Potential

People who want to sell their houses in San Jose may attract real estate investors, especially if it is in a lower-priced neighborhood or if it needs some sprucing up. This city offers a high investment potential for real estate investors.

Professional real estate investors know that the best deals are usually found off-market.  However, some investment-worthy homes can be found in plain sight on the MLS.  Savvy investors will recognize opportunities to find inexpensive homes they can affordably renovate and  then rent them for prices that allow them to recoup their money and make a profit over the long term, given the current demand for rental housing. The average rental price for a studio or one-bedroom apartment in San Jose ranges from $2500 to $3300 per month.

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One of the Safest U.S. Cities

Many people want to move to San Jose because of its reputation for being a relatively safe city. In fact, it ranks in the 50th percentile for being one of the safest cities in the country. In 2022, it had a crime rate of just over 43 out of 1000 people, putting it just below the national crime average. Its reputation for safety appeals especially to people wanting to move their families to and raise children in San Jose.

Community Development

As a growing city, San Jose has numerous ongoing community development projects in the works. These projects aim to enhance people’s overall living experiences in the city. They also strive to provide amenities and services people need and want for their daily lives. For example, some of this development involves buying housing to ease the demand for rental houses for newcomers to the city.

Healthcare Facilities

Forbes magazine recently recognized San Jose as the number one healthiest city in California. It has record-low stats for drug overdoses, obesity and smoking. It also has world-class medical facilities and hospitals like Kaiser Permanente, Santa Clara Medical Center, O’Connor Hospital and St. James Health Center, to name just a few.

Entertainment

San Jose offers people a variety of entertainment options. People who move here can enjoy a wide variety of locally-owned restaurants, as well as theaters and museums.

Numerous festivals and celebrations also take place throughout the city each year. These events include the San Jose Summer Jazz Fest, the San Jose Greek Festival and the San Jose International Short Film Festival. And I would be remiss if I didn’t include Christmas in the Park which comes every holidays season to Cesar Chavez Park in the heart of downtown San Jose.

Green Spaces

People moving to the city will find ample green spaces for their enjoyment. These spaces include the Guadalupe River that runs through the Santa Clara Mountains. They also include Coyote Creek Trail and Los Gatos Creek Trail. The green spaces in San Jose likewise include Coyote Valley, which serves as a migration corridor for a variety of wildlife.  I have a long list of the amazing parks and open spaces in San Jose which I invite you to check out.

Economic Policies

San Jose offers favorable economic policies and incentives for companies of all sizes. These policies encourage existing businesses to stay, as well as expand and hire more people. They also encourage entrepreneurs to come to the city to open new companies and create more local jobs.

The economic policies also create job stability for people living in San Jose. They foster long-term residents and offer incentives for people to stay, raise families and help grow the community.

Public Services

People who move to San Jose have access to a wide variety of public services. These services include numerous local libraries, as well as a local recycling program. They also include free medical services for eligible patients, debt relief programs, several fire departments located throughout the city and a versatile police department. People can find these services on the city’s website. They can also access services at the city hall.

Future Growth

Real estate observers expect San Jose to experience a significant growth rate in the next few years. Already, the population grew by a 0.56 percent increase between 2022 and 2023. The current population sits at close to one million residents.

Further, that growth rate could increase by as much as 2.1 percent in the next year. In terms of San Jose home prices, sale-to-list prices have risen to an average of 104.3 percent, or 0.4 points, since October 2024, according to MLS data.

San Jose has one of the hottest real estate markets in the country. It also offers a booming economy and is home to some of the top employers in the U.S. The healthy economy and growing job market have created a high demand for housing. Homeowners who list their houses typically wait less than a month to close the sale.

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