How San Jose’s Transportation Projects Will Shape Property Values by 2030

San Jose is at the center of a massive transportation transformation, with major projects like BART expansion, high-speed rail development, and highway improvements reshaping how residents commute. These changes will not only reduce traffic congestion but also have a significant impact on real estate values. For homebuyers, investors, and current homeowners, understanding the relationship between transportation projects and property values is key to making informed decisions.

This article explores upcoming Silicon Valley transportation projects, their expected impact on the San Jose commute, and how proximity to transit hubs will influence housing prices from 2025 to 2030.

The Evolution of San Jose’s Transportation Network

San Jose’s transportation infrastructure is undergoing a major shift to accommodate a growing population and workforce. Here are some of the most significant projects currently underway:

1. BART Extension to Downtown San Jose

The long-awaited BART expansion impact is one of the most significant developments in Silicon Valley’s transit network. The new extension will connect the Berryessa/North San Jose station to Downtown San Jose and Santa Clara, making it easier for residents to commute to San Francisco and other Bay Area cities.

• Impact on Property Values: Homes and commercial properties near BART stations tend to appreciate faster due to increased demand from commuters. Historically, properties within half a mile of transit stations have seen price increases of 10-20% over time.

• Neighborhoods to Watch: Downtown San Jose, Five Wounds, and Alum Rock are expected to benefit the most from this expansion.

2. California High-Speed Rail & Diridon Station Redevelopment

San Jose’s Diridon Station is poised to become a major transit hub, integrating high-speed rail, BART, Caltrain, and VTA light rail. The California High-Speed Rail project will connect San Jose to Los Angeles in under three hours, increasing the city’s appeal as a central location for commuters and businesses.

• Impact on Property Values: Areas surrounding Diridon Station are likely to see significant growth in mixed-use developments, increasing home values and rental demand.

• Neighborhoods to Watch: Midtown San Jose, The Alameda, and Japantown will see rising property interest due to proximity to the new hub.

3. VTA Light Rail Modernization

The Santa Clara Valley Transportation Authority (VTA) is modernizing its light rail system to improve speed and reliability. Plans include new express services, updated stations, and more efficient routes connecting suburban areas to job hubs.

• Impact on Property Values: Improved accessibility makes suburban areas more attractive, potentially raising home prices in places like Milpitas, Mountain View, and Sunnyvale.

4. Highway and Express Lane Expansions

Several major highway projects are also in progress, including expansions of Interstate 280, Highway 101, and Express Lanes along I-880 and I-680. These improvements will ease congestion for drivers but may have a smaller impact on property values compared to public transit expansions.

• Impact on Property Values: While these changes reduce commute times, their influence on home prices is less pronounced than transit-based projects. However, homes near new express lane exits may see an uptick in demand.

How Transportation Projects Influence Real Estate Investment

1. Proximity to Transit Hubs Increases Property Demand

Buyers and renters prioritize easy access to public transportation. Areas with transit-oriented developments (TODs) typically see higher demand, leading to increased property values and rental rates.

2. Commercial Growth Drives Residential Demand

New transit hubs attract businesses, retail, and dining options, further boosting the desirability of surrounding residential areas. Diridon Station’s redevelopment, for example, is expected to bring thousands of jobs to the area, increasing housing demand.

3. Affordable Housing Near Transit

Some housing developments near transit stations will include affordable housing units. These efforts aim to provide lower-income residents with better commute options while ensuring neighborhoods remain economically diverse.

Neighborhoods Poised for Real Estate Growth

1. Downtown San Jose

With the BART extension, high-speed rail, and Diridon Station transformation, Downtown San Jose is becoming one of the most well-connected areas in Silicon Valley. Expect rising home prices and increased demand for rental properties.

2. Berryessa/North San Jose

Already home to the newest BART station, Berryessa is positioned for continued growth. With more businesses moving into the area, property values will likely rise steadily.

3. Milpitas

Milpitas is benefiting from improved light rail service and proximity to the BART extension, making it an attractive option for first-time homebuyers seeking affordability and accessibility.

4. The Alameda & Midtown

These historic districts near Diridon Station are experiencing a surge in development, making them prime locations for investors looking at long-term property appreciation.

Conclusion

San Jose’s transportation revolution is reshaping the city’s real estate market. With BART, high-speed rail, and VTA modernization projects underway, property values near transit hubs are expected to rise significantly. Whether you’re a homebuyer looking for a well-connected neighborhood or an investor seeking high-growth areas, understanding these transit-driven changes is crucial for making informed real estate decisions.

If you’re considering buying or selling property in San Jose, Block Change Real Estate is here to guide you through the evolving market and help you capitalize on the opportunities ahead.