The current tech bubble has made Silicon Valley one of the most sought-after property markets in the nation. Aggressive speculation of new digital tools and information services has sparked an innovation race that, each year, draws hundreds of new companies and residents looking for homes or offices in the area.
Silicon Valley is rapidly evolving, as a result — especially when it comes to housing prices. Many homes in the region carry price tags that dwarf the national median home value. For example, San Jose’s metro area — one of the most prominent in the Valley — has a median single-family home price of over $1 million, according to the National Association of Realtors. That’s an astronomical number when compared to the national median price, $240,700.
There is a tangible reason for this. People who’ve never visited the area may think home and business owners are paying higher prices just to have property next to Google, but there’s certainly more to the issue. Silicon Valley cities and neighborhoods are often modern, thriving, and amenity-rich. Often, this is a conscious response from companies in these areas in order to capitalize off of the influx of new consumers. That said, housing prices are still, for many cost-prohibitive, especially if you look in places like downtown San Jose or San Francisco.
Of course, not everything is absolute. A tenacious home hunter can find several cities and neighborhoods throughout Silicon Valley that buck the pervading high home value trends. Here are just a few of our favorites:
Fairgrounds, San Jose, CA
Also referred to as South Campus, the Fairgrounds neighborhood boasts one of the smallest median home prices ($617,000) among San Jose neighborhoods. It also has a wide range of attractions and institutions to satisfy a large spectrum of tastes. Home to San Jose State University and the Santa Clara County Fairgrounds, this neighborhood has a number of recreational activities, like Class A minor league baseball, the Happy Hollow Park and Zoo, and the Japanese Friendship Gardens — a tranquil park featuring Koi ponds, egret sightings, and awing Japanese architecture.
Evergreen, San Jose, CA
Evergreen has a higher median home price ($885,000), but, unlike the Fairgrounds, this price is projected to lower by 0.3% over the next year. It’s one of the fair neighborhoods where houses are expected to become cheaper. Like many San Jose neighborhoods, Evergreen has a lot of attractions, including museums, parks, the City Lights Theater Company, even laser tag. One of the biggest draws in Evergreen, though, is the Winchester Mystery House — a haunted home exhibit originally built by Sarah Winchester, widow to the founder of the Winchester firearms dynasty.
Milpitas, CA
Milpitas’ housing market has experienced a recent resurgence due to a number of factors, including the city’s close proximity to San Francisco and San Jose, as well as the relatively modest listing prices. However, the median price for homes in Milpitas rose by over 5% last year, so it’s likely that prices will steadily rise to match what we’ve come to expect in most areas of Silicon Valley. That said, now is an excellent time to buy low and experience all that Milpitas has to offer, from yearly festivals like The Celebrate Milpitas Festival to regional parks with facilities for hang gliding and paragliding.
Gilroy, CA
Located roughly half an hour southeast of San Jose, Gilroy is close enough to the outer periphery of Silicon Valley to make daily commuting possible; plus its housing market is very affordable when compared to neighboring metro areas. The average median home price in Gilroy is $625,000, and that figure is only projected to increase by 0.3% this year. Other markets may have comparable prices, but are subject to unpredictable fluctuations or exponential price hikes.
Gilroy home prices are expected to stay relatively uniform, which makes it a good time to look into this area — especially if you are a wine enthusiast. Gilroy has a number of vineyards and wineries, including the Kirigin Cellars and Fortino wineries. The city also has its fair share of family-friendly entertainment, most notably with The Gilroy Gardens Family Theme Park, featuring roller coasters, the Sky Rail, and a 48-foot-tall greenhouse exhibit.
When we want the most comprehensive guidance and service, we trust professionals. Whether it’s interior designers to help revitalize the décor of a spare room or an expert bathroom remodel company replacing one of your fixtures. Regardless of where you have your sights set, make sure to seek out the help of a knowledgeable real estate agent to ensure that you receive the most information about your target neighborhoods as possible. With a little bit of research and persistence, you can land an affordable property in one of the nation’s most expensive housing markets.
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