Headlines this fall have highlighted a striking statistic: the number of “affordable” homes in San Jose has doubled year-over-year. At first glance, it sounds like a breakthrough moment for one of the nation’s most competitive housing markets. But here’s the reality—this shift is more mirage than movement, and the dream of true accessibility in the Bay Area remains as elusive as ever.
What Counts as “Affordable” in San Jose?
In today’s market, affordability is often defined in relative terms. With median home prices in San Jose hovering near the $1.3 million mark, homes that fall even slightly below that threshold are labeled “affordable.” For many buyers, though, a $900,000 price tag hardly feels within reach.
The doubling of listings in this category may show progress, but the scale is small: “affordable” homes remain just a fraction of total inventory. And with demand still high, competition for these properties is far from easing.
Why Accessibility Remains Out of Reach
Several forces are at play:
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High Borrowing Costs: Even as mortgage rates dip toward 6.8%, monthly payments remain heavy, especially for first-time buyers.
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Income Gaps: Tech salaries may sustain the market at the top, but middle-income families still struggle to compete.
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Limited Supply: A larger pool of “affordable” listings doesn’t change the fact that the Bay Area remains fundamentally undersupplied relative to demand.
What Buyers Should Do Now
If you’re navigating the Bay Area market, here are key takeaways:
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Look Beyond Labels: Don’t assume “affordable” equals attainable—factor in financing, taxes, and long-term carrying costs.
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Be Ready to Move Quickly: Even within this slim slice of inventory, competition remains fierce.
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Think Long-Term: Equity growth, location, and livability often matter more than squeezing into the lowest price point.
The Bay Area’s affordability crisis isn’t solved by a statistical uptick—it requires systemic change, from zoning reform to creative financing solutions. But for buyers with vision and guidance, opportunity still exists in identifying properties that balance lifestyle, location, and value.
In a market where “affordable” is often more headline than reality, strategy is everything—and I’m here to help you find it.
Thinking about entering the Bay Area market? Let’s talk about how to make today’s numbers work for your future.
