Housing Production

  • Between 2010 and 2017, there were 708,112 housing units produced statewide, less than half the estimated need of 1,819,568 during the same time period. (Terner Center, 2019)
  • San Jose increased its overall housing stock by 6% between 2010-2017, the majority of this new stock is multifamily housing. Milpitas saw a 20% increase in the same period, 15% of which was multifamily. (Terner Center, 2019)
  • 7% of the existing affordable housing stock in Santa Clara County is considered at risk for conversion. The loss of these affordable homes increases the already significant affordable housing deficit that the county faces. (California Housing Partnership)
  • In 2015, Santa Clara County continued its decades- long pattern of adding many more jobs than housing units, adding 41,300 new jobs but only 5,353 new housing units. (Vital Signs).
  • As of 2017, Santa Clara County’s largest City–San Jose–met only 8% of its RHNA goal for affordable housing construction (HCD Annual Progress Report).
  • Santa Clara County met 97% of its market rate housing need in the last State Regional Housing Needs Assessment (RHNA) cycle versus only 22% of its lower income need (Association of Bay Area Governments).
  • The California Air Resources Board identifies housing as a key strategy to meet 2030 climate targets as part of SB 375 Sustainable Communities Strategy. Citing underdevelopment of housing as a major contributor to increased Vehicle Miles Traveled, as residents throughout California must drive farther and longer to access employment and goods and services. (CARB, 2018)

Housing Affordability

Wages
  • Despite leading the nation in per capita economic growth, nearly 9 in 10 jobs in the Silicon Valley region pay lower wages today, adjusted for inflation, than they did 20 years ago. Lower wages and high housing cost burdens leave many households vulnerable.  (Working Partnerships, 2018)
  • Wages for all but the highest-paying workers in the Silicon Valley have fallen by 14% since 1997. Lower wages force many households to have to choose between longer commutes or relocating all together to more affordable areas.(Working Partnerships, 2018)
  • While common thought is that Silicon Valley tech workers all make six figure salaries, blue collar contract workers make an average annual income of $19,000 and white collar contract workers make an average annual income of $53,200. These workers can afford rents of $475 and $1,330 respectively, far below the median rent of $2,850 (Working Partnerships USA, 2016).
  • Median home prices in Santa Clara County are 10.6 times the median income vs. 3.7 nationally (Zillow, 2017).
  • In Santa Clara County, a minimum wage worker would need to work 35 hours/day (40 hrs/wk at $11.00/hr) in order to afford an average, typical 2-bedroom apartment (National Low Income Housing Coalition, 2018).
Rental Market
  • In March 2019, Mountain View, Palo Alto, Santa Clara, Sunnyvale, and Milpitas all ranked in the top 10 of most expensive cities in the Bay Area, with average rents for a two bedroom unit of $3,030 and above. (Zumper, 2019)
  • 62% of 25 to 44 year-olds are renters in the San Jose metropolitan area. (Forbes, 2019)
  • Rents increased in San Jose by 28% between 2014-2018. (Mercury News, 2019)
  • San Jose renters spend 39% of their income on rent compared to 29% of income for renters nationwide (City of San Jose; Zillow Rental Affordability Index Q1 2017).
  • Renters who are women of color face the steepest burden of housing costs, with 59% of this demographic paying more than 30% of their income on housing (PolicyLink).
Ownership Market
  • Of the to 50 largest metropolitan areas in the Country, the San Jose metro has the tightest housing market and is the least affordable. (Forbes, 2019)
  • San Jose is expected to experience a 16% increase in median home value through the fall of 2019, the biggest home-price gain of the U.S.’s 30  largest cities (HBI, 2018).
  • Only 11.6% of homes in San Jose-Sunnyvale-Santa Clara Metropolitan Statistical Area are affordable for the median family income of $125,200 (NAHB, 2018).
  • The median-priced home in Santa Clara County, as of August 2018, was $1,110,000, up almost 28% year over year (NAHB, 2018).

Demographic Data

  • The San Jose Metropolitan Area added 37,000 new jobs in 2018. Many of these new employees are moving in from outside the region, increasing pressure on an already significant housing shortage. Bay Area Council
  • For every new engineer or high-paid worker hired, demand is created for five lower-wage jobs (Bay Area Council).
  • One third of the County’ 18-34 year olds live with their parents (Joint Venture Silicon Valley).
Population Change
  • While Santa Clara County saw an overall increase in population of over 4,000 residents between July 2017  and July 2018, the county lost a total of  24,645 domestic residents in that same time period. (ACS 2018 population estimates)
  • Between 2010 and 2016, For every household with an income of $200,000 or more that moved out of the Bay Area, there were six earning less than $100,000 that moved out of the Bay Area. (Terner Center, 2018)
  • Out migration of low income households out paces in-migration. In contrast, 24% more households earning between $100,000 and $200,000 are moving into the Bay Area than are moving out. (Terner Center, 2018)
  • Between 2010 and 2016, 40% of those moving out of the Bay Area came from households making $50,000 or less. These households are disproportionately Black and Hispanic. (Terner Center, 2018)
Homelessness

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