Santa Clara wrapped up 2025 with an impressive 2,768 new residential units, far surpassing the 155 completions from 2024 and earlier years. Most of these additions came as apartments and condominiums, with a small portion from accessory dwelling units and single-family homes. This wave of development marks a high point for the city, reflecting years of preparation that now deliver much-needed options amid the Bay Area's tight inventory.
Two veteran real estate firms are eyeing a proposal to produce well over 400 homes at an office building site in San Jose in a fresh indication that housing conversion efforts remain of interest to developers. The potential development site is at 3550 North First St. in San Jose, a property that is owned by an affiliate of LBA Realty, Santa Clara County real estate documents show.
City leaders have adjusted the Inclusionary Housing Ordinance to breathe life into dormant projects. The update shifts affordability tiers for rental units from 50, 60, and 100 percent of area median income to 60, 80, and 110 percent, easing the path for developers to move forward. This pivot aims at households caught between subsidized options and soaring market rates, fostering a broader mix of homes that reflect the city's diverse rhythms and needs.