Los Gatos

Los Gatos’ Demographics

Housing Types in Los Gatos

Jobs & Housing in Los Gatos

Jobs: 20,836
Employed Residents per Household:  1.24
Jobs per Employed Resident: 1.31
Jobs-Housing Balance Ratio: 1.63
Source: ACS 2023 5 year estimates

Note: Jobs-Housing Balance is a measurement used by planners that assumes that a balanced community is one where people can both live and work. This ratio compares the number of jobs in a community to the number of housing units.

Jobs-Housing Fit: 10.5 low wage jobs per low-cost rental unit
Source: Jobs from LEHD Origin-Destination Employment Statistics 2022; households from U.S. Census, ACS 2023 5 year estimates B25056, B25061

Note: Jobs-Housing Fit measures the mismatch between wages and housing affordability as the ratio of low-wage jobs (less than $3,333/month) to the number of low-cost rental units (less than $1,500/month). In Los Gatos, there are more than 10 low-wage workers competing for each affordable home.

Note: Current standards measure housing cost in relation to gross household income: households spending more than 30 percent of their income, including utilities, are generally considered to be overpaying or “cost burdened.” Severe cost burden occurs when households pay 50 percent or more of their gross income for housing. The impact of high housing costs falls disproportionately on extremely low-, very low-, and low-income households, especially renters. While some higher-income households may choose to spend greater portions of their income for housing, the cost burden for lower-income households reflects choices limited by a lack of a sufficient supply of housing affordable to these households.

Homelessness in Los Gatos

2022 Homeless people: 58 people, all unsheltered

2019 Homeless people: 16 people, all unsheltered
Source: 2019 and 2022 Homeless Point In Time Count

Overcrowding in Los Gatos

Total Rental Homes: 4,788
Overcrowded Rental Homes: 126
Severely Overcrowded Rental Homes: 188
Percent of Rental Homes, Overcrowded: 6.56%
Source: ACS 2023 5 year estimates

• The U.S. Census defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens). Units with more than 1.5 persons per room are considered severely overcrowded.

Note: Overcrowding increases health and safety concerns and stresses the condition of the housing stock and infrastructure. Overcrowding is strongly related to household size (particularly for large and very-large households) and the availability of suitably sized housing. Overcrowding impacts both owners and renters; however, renters are generally more significantly impacted. 

2023-2031 Regional Housing Needs Allocation (RHNA) 

Every eight years, the Regional Housing Needs Allocation (RHNA) process is used to assign each city and county in California their “fair share” of the region’s housing need, by income level. These homes are intended to address the housing shortage, meeting the needs of existing residents and accommodating projected growth in the region. 

The RHNA process is critical because state law requires each city and county to make a specific, actionable, and measurable plan, called a Housing Element, that complies with state law and addresses housing needs. It must identify enough sites to hold the RHNA, by income level, and create programs that remove barriers to housing production and protect residents vulnerable to displacement. Local jurisdictions must also take significant steps to affirmatively further fair housing (AFFH), addressing racial and economic segregation and disparities in access to resources, and meeting the unique housing needs of residents in protected groups. The California Department of Housing and Community Development (HCD) is responsible for certifying Housing Element compliance with state law.

In the past, many cities and counties have fallen far short of their RHNA targets, as the Bay Area’s housing crisis continues to grow. In this planning cycle, new laws give HCD additional tools to provide technical assistance and hold jurisdictions accountable to their plans. Each spring, jurisdictions are required to complete an Annual Progress Report on the Housing Element, including the number of homes permitted by income level, program actions taken, and outcomes achieved. The table below shows Los Gatos’ target in the sixth cycle and progress to date in permitting new homes.

Permitting progress as of December 2023. Source: HCD 2023 Housing Element Implementation and APR Data Dashboard.

2014-2022 Regional Housing Needs Allocation

The table below shows Los Gatos’ final progress toward meeting the 2014-2022 RHNA.

Permitting progress as of December 2022. Source: HCD 5th Cycle 2022 Housing Element Implementation and APR Data Dashboard.

Current Affordable Housing Stock

SOURCE: Units reported in the Housing Element Annual Performance Report that received building permits through 2023 were added to the unit counts in the previously reported 2018 Base Year table.  This methodology necessarily means that any ELI units, if any, are included in the VLI category since that is how HCD has required production data to be reported.  The RHNA data on new units relies on self-reporting by jurisdiction and can include units for which building permits were issued that never got built.  The percentage of the total housing stock in the community is based the California Department of Finance’s Table E-5.

See more information on our affordable housing assets page.

Accessory Dwelling Units (ADUs)

ADUs and Junior Accessory Dwelling Units (JADUs) can be effective options for adding much needed housing in California, gently increasing density by adding more homes to a single lot. All California cities and counties are required to permit ADUs and JADUs according to State law. Since 2016, State ADU laws have evolved to make new development more feasible. The California Department of Housing & Community Development (HCD) provides clarity and consistency on State housing law through education, technical assistance, and enforcement. HCD’s 2025 Accessory Dwelling Unit Handbook provides the most up-to-date guidance on State ADU laws.

HCD 2023 Housing Element Implementation and APR Data Dashboard.

Affordable Housing Policies

Housing Element Policies

The Housing Element of Los Gatos’ General Plan includes policies in support of its affordable housing efforts.

• Affordable Housing.  General policies supporting a variety of housing types, including a mix of rental and ownership products, and fully utilizing available funding to finance affordable housing development.
• Homelessness.  Support for the County’s Continuum of Care plan and Destination: Home’s Housing 1000 campaign to provide housing opportunities for the homeless, including emergency shelter as well as transitional and permanent housing.
• AHOZ Zoning District.  The Town created a new zoning district, called, Affordable Housing Overlay Zone (AHOZ), with higher densities, relaxed development standards and incentives to encourage affordable housing production (incentives include financial concessions, reductions in required parking and setbacks, increased allowed lot coverages, waiver or deferral of building plan-check and inspection fees as well as construction mitigation fees. In 2018, the Council voted to reduce the sites within the AHOZ from 5 to 1.
• ELI Housing.  Town staff meets periodically with affordable housing developers to provide technical assistance; provides expedited application processing; identifies funding opportunities; and offers potential incentives similar to those offered in the AHOZ district. 
• Density Bonus. The Town offers a density bonus of up to 100 percent for developments that include housing for seniors, the disabled and/or low-/very low-income households.

Additional Resources

• Town of Los Gatos 2023-2031 Housing Element
• Town of Los Gatos Inclusionary Housing Policy
• Town of Los Gatos Mobile Home Ordinance
• Town of Los Gatos Planning Division
• Town of Los Gatos Housing Programs

Photo: Open Doors, MidPen Housing