Why is SJ housing so $$$$$$?

 

Giovanni Francesco Romanelli, Public domain, via Wikimedia Commons

 

While Dem gubernatorial candidates cherrypick policy tweaks to address the state's eternal housing crisis, Blockchain Real Estate gets to the nonpartisan heart of the matter with a full list of issues for SJ that need to be addressed at the city or state level. 

Here are key factors that Blockchain Real Estate identifies as fundamental to our region's affordability crisis in housing:

  • Chronic Supply Shortages
    --Permitting backlog way behind state mandates.

  • Land Scarcity:
    --Encircled by hills and protected open space, new development
    opportunities are limited.

  • Pending vs. Active Listings:
    --The active-to-pending ratio hovers at 1.3—well below the 4–6 ratio
    that signals a balanced market. Too few homes chase too many buyers,
    fueling bidding wars and price surges.

  • Zoning & ADU Regulations
    --Local land-use rules further throttle supply.

  • Upzoning Resistance
    --Neighborhoods regularly block higher-density proposals, keeping
    housing types homogeneous.

  • Tech Salaries & Demand Dynamics
    --Silicon Valley epicenter drives purchasing power—and competition.
    Even “entry-level” homes cost nearly $1.3M, eclipsing national norms.

  • Job Growth
     Major employers—Google, Apple, NVIDIA—expand local headcount,
    increasing demand for proximity.

  • Property Taxes & Carrying Costs
    --High acquisition prices are compounded by substantial ongoing expenses.
    Monthly carrying costs can top $2,500 beyond mortgage, squeezing
    budgets further.

Read More here.

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christopher escher