July 9, 2025
Real Estate
San Jose consistently ranks among the priciest U.S. cities. Yet its high-tech jobs, top schools, and desirable neighborhoods keep people coming.
But if you’re weighing a move—or thinking of staying—is it cheap to live in San Jose? In this article, we’ll explore real-world numbers: home prices, rents, property taxes, utilities, and even ADU income opportunities. We’ll compare key neighborhoods—Evergreen (95123), Almaden Valley, Silver Creek, and Cupertino—and highlight buyer programs and cost-saving tips to help you make an informed decision.
Median Sale Price (June 2025): $1.45 million
Average Sale Price: $1.6 million (driven by high-end clusters in Cupertino & Almaden)
Neighborhood Breakdown:
Evergreen (95123): Median $1.48 M, average $1.52 M—family homes with yard space
Almaden Valley: Median $1.55 M, average $1.6 M—ranch-style & country-club estates
Silver Creek Condos: Median $1.27 M, average $1.3 M—condos & townhomes
Cupertino Pockets: Median $2.1 M, average $2.25 M—luxury single-family homes
Property Type | Average Rent |
---|---|
3-bed Single Family | $4,600/month (Evergreen) |
4-bed Single Family | $5,200/month (Almaden) |
2-bed Condo | $3,800/month (Silver Creek) |
Studio/1-bed Apt | $2,300–$2,800 (citywide) |
Takeaway: Even renting a modest condo costs over $2,500 monthly, while mortgages on median homes exceed $7,500.
Base Tax Rate: ~1.18% of assessed value
Annual Tax on $1.45 M Home: ~$17,100
Additional Bonds/Assessments: $300–$1,000/year in many neighborhoods
Monthly Utilities: $200–$300 (gas, electric, water)
Internet & Cable: $80–$120
Maintenance Reserve: 1–2% of home value per year ($15K–$30K)
Silver Creek Condos: $700–$750/month covers landscaping, security, pool
Almaden Gated Estates: $500–$1,000/month for enhanced amenities
Tip: Factor these into your monthly budget as “hidden” housing costs beyond mortgage or rent.
San Jose Median Household Income: $135,000/year
Ideal Housing Expense: 28% of gross (~$3,150/month)
Reality: Mortgage + taxes on a median home = $8,000–$8,500/month (70% of income)
Renters Paying 30%+: Over 60% of renters pay more than 30% of income on rent—higher than national average.
Conclusion: Without dual high incomes or supplemental ADU rent, housing in San Jose strains typical budgets.
Permit Costs & Time: $15K–$30K, 6–12 months approval
Rental Income: $2,500/month typical in Evergreen/Almaden—adds ~3.5% yield
Value Bump: Properties with legalized ADUs sell for $50K–$100K more
Strategy: If you own a single-family home in 95123 or Almaden, consider adding an ADU to offset high carrying costs.
Parks & Trails: Lake Cunningham access; dog parks increase walkability value.
Schools: Jackson Elementary’s 9.2/10 rating adds 3–5% home premium.
Country Club Prestige: Memberships and golf views drive a 5% price premium.
Quiet & Green: Higher satisfaction scores but higher price points.
Transit Access: BART shuttle proposals for 2026 boost investor interest.
Condo Lifestyle: Lower maintenance but significant HOA fees.
Elite School Districts: 9.5/10 ratings command top-dollar prices—$2 million+ medians.
Tech Proximity: Apple, Google commuters dominate.
Insight: Choose a neighborhood that aligns with both your budget and lifestyle priorities, balancing cost against amenities.
Spring Peaks: April–May prices highest; summer dips ~1–3%
Fall Recovery: September–October sees renewed buyer activity.
Current 30-Year Rate: ~5.25%
Forecast: Potential 0.25% cut by early 2026 improves buying power.
ADU Streamlining: City efforts to speed permits may add 500+ units in 2026–27.
Transit Projects: BART shuttle stops and mixed-use developments could spark localized gains.
Takeaway: If you can manage today’s costs—through dual incomes, ADU income, or assistance programs—you lock in rates and take advantage of modest seasonal price dips.
In short, living in San Jose is far from cheap. Median home prices near $1.45 million, monthly carrying costs over $8,000, rents north of $2,500, and steep taxes place it among the nation’s most expensive metro areas.
Yet, strong tech-sector incomes, ADU opportunities, top-rated schools, and world-class amenities continue to draw buyers and renters. For those weighing the question—Is it cheap to live in San Jose?—the answer lies in careful financial planning: leveraging buyer programs, considering ADUs for extra income, and selecting neighborhoods that balance cost with quality of life. As your partner in this market, Block Change Real Estate provides data-driven insight to help you decide if San Jose’s lifestyle justifies its price tag—and how to make it work for you.
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