Housing developments & market [developing]
Key Questions
How are major tech leases affecting the housing market?
Google's 2.1 million sq ft renewal and Amazon's 317,000 sq ft lease in Sunnyvale are expected to sustain housing demand in the area.
What is the current median rent in the San Jose metro area?
The median rent is $3,423, up 3.3% year-over-year, with Mountain View rents rising 4% YoY.
What new housing projects are using SB 79 in Palo Alto?
Nine projects totaling 341 units have been proposed under SB 79, including Forest Commons and High Street.
How are wealthy Bay Area cities meeting housing goals?
Progress is almost entirely through ADUs, with all of Mountain View's affordable permits last year coming from ADUs.
What state funding supports affordable housing in the area?
Mountain View received a $50 million state grant for 87 E. Evelyn affordable units, and Sunnyvale has a proposed 110-unit project on a former Wells Fargo site.
What risks do renters face from electrification efforts?
A SPUR report warns that retrofit costs could be passed on via rent hikes or renovictions without stronger tenant protections.
How is mass timber being used for housing in the South Bay?
Projects in Los Altos and Sunnyvale are using mass timber construction, supported by $50 million in state funding for faster, cheaper building.
What is the status of Palo Alto's property values?
Assessments rose 5.47%, outpacing Mountain View's 2.9% growth as the city seeks Prohousing Designation from the state.
Google, Amazon, Apple leases sustain housing demand. San Jose metro median sale price $1.575M, down 3.4% YoY; active listings up. Mountain View market remains tight (May avg $2.5M, pending sales down 6%). Peninsula home sales roundup shows Mountain View leading in sales volume (9 transactions) this week, with prices ranging from $780K to $30M (Los Altos Hills). SB 79 in effect – Palo Alto seeing flurry of applications and resident backlash, including a 98-unit housing tower near Caltrain with 13 affordable units; parking omission likely to spark debate. Palo Alto released interim SB 79 implementation regulations; pre-applications for 341 units submitted near Caltrain stations. Corso Apartments breaking ground (120 affordable). AI-driven wealth reshaping competition. State budget cuts threaten affordable housing tax credits. Wealthy cities making progress almost entirely through ADUs. Federal housing package could boost ADU loans. Prometheus adding 8 Samara ADUs in Mountain View. Intuit donates $500k to MV Affordable Housing Fund. A virtual workshop on rent increase limits for landlords is being offered. California developers are almost uniformly skipping new office projects (92% in Northern CA), reinforcing value of existing office space. Gamel Way residents face eviction to make way for condos; city council has leverage over street sale; Cruz family relocation story highlights inadequate relocation benefits. Prop 45 CEQA reform could further accelerate housing development.