Housing developments & market
Key Questions
What is SB 79 and how does it affect local housing?
SB 79 took effect July 1 with a tiered system for housing near transit. Mountain View opened a July 1-15 window for taller proposals, though advocates do not expect a rush of projects.
Are Bay Area rents rising in 2026?
Rents are increasing across the region, with Mountain View up 4% year-over-year. Vacancy rates are dropping due to AI-driven demand pushing prices outward.
How are Bay Area cities performing on state housing targets?
Many suburbs are behind on RHNA goals for 2031, with some reaching only 4% of targets. This risks builder's remedy actions and decertification.
What new housing projects are advancing locally?
Corso Apartments with 120 affordable units is breaking ground. Palo Alto rezoned the Magnussen Toyota site for 66 townhomes, and teacher housing is 64% occupied.
What recent real estate transactions occurred in Sunnyvale?
A Sunnyvale apartment complex sold for nearly $70 million. A merger between AvalonBay and Equity Residential was also announced.
How do state budget cuts impact local housing efforts?
Cuts to HHAP and affordable housing tax credits threaten homeless response programs. Palo Alto is seeking state Prohousing Designation to mitigate effects.
What is the status of parking reductions for supportive housing?
Delays in parking reductions may affect timelines for supportive housing projects. The county continues supporting projects under construction.
What are the latest Palo Alto housing market statistics?
May 2026 averages reached $2.5 million with pending sales down 6%. The city saw no rush of SB 79 projects during its review window.
SB 79 now in effect (July 1) – tiered system for housing near transit, city-by-city responses including Mountain View's July 1-15 window for taller proposals. Corso Apartments breaking ground (120 affordable). Palo Alto Magnussen Toyota site rezoned for 66 townhomes. AI-driven wealth reshaping competition – 35% down payments. May 2026 market: avg $2.5M, pending sales down 6%. Palo Alto vs Stanford housing showdown heats up – 1,600+ comments on expansion; county decision pending. Parking reduction delay may impact supportive housing timelines. Teacher housing 64% occupied. State budget cuts to HHAP and affordable housing tax credits threaten local homeless response. Palo Alto seeks state Prohousing Designation. East Palo Alto leaders clash over affordable-housing law. Palo Alto nixes 'urgency' measure to limit SB 79. UC Berkeley's plans for massive Moffett space center raise housing concerns. Mountain View rancher sells $602K over asking. Key policy: Mountain View CSFRA 2026. Sunnyvale offices poised for housing conversion. Sunnyvale ramps up 'vanlording' enforcement. Real estate merger between AvalonBay and Equity Residential. Sunnyvale apartment complex sold for nearly $70M. Bay Area rents rising; Mountain View up 4% year-over-year, vacancy rates dropping, AI-driven spillover pushing prices outward. Palo Alto's SB 79 window saw no rush of projects; experts skeptical of flood. Regional context: Many Bay Area suburbs are far behind on housing goals, with builder's remedy and decertification risks looming. Commercial real estate woes – Mountain View 2.9% growth slowest in county; Prop 8 decline applications nearly triple residential properties in decline, signaling potential tax revenue shortfalls. Wealthy suburbs blocking housing context article provides background for local housing battles. Rhoda AI nearly triples footprint in Sunnyvale, signaling continued AI sector growth in the area.