Santa Clara

Santa Clara’s Demographics

Housing Types in Santa Clara

It is important to have a variety of housing types to meet the needs of a community today and in the future. In 2022, 36.86% of homes in Santa Clara were single family detached (generally the most expensive type of home), 9.54% were single family attached, 9.31% were small multifamily (2-4 units), 44.22% were medium or large multifamily (5+ units), and 0.08% were mobilehomes. Between 2010 and 2020, the number of multi-family units increased more than single-family units. In Santa Clara, the share of the housing stock that is detached single family homes is lower than the average of other jurisdictions in the region.
Source: California Department of Finance, 2023 Table E-5

Jobs & Housing in Santa Clara

Jobs: 111,432
Employed Residents per Household: 1.49
Jobs per Employed Resident: 1.50
Jobs-Housing Balance Ratio: 2.09
Source: ACS 2022 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: 9.31 low wage jobs per low-cost rental unit
Source: Jobs from LEHD Origin-Destination Employment Statistics 2021; households from U.S. Census, American Community Survey 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 Santa Clara, there are more than 6 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 Santa Clara

2022 Unhoused people: 440 people, including 375 unsheltered and 65 sheltered (+35% from 2019)

2019 Unhoused people: 326 people, including 264 unsheltered and 62 sheltered (+20% from 2017)
Source: 2019 and 2022 Homeless Point In Time Count

Overcrowding in Santa Clara

Total Rental Homes: 29,108
Overcrowded Rental Homes: 1,422
Severely Overcrowded Rental Homes: 1,766
Percent of Rental Homes, Overcrowded: 10.95%
Source: ACS 2022 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 Santa Clara’s 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 Santa Clara’s final progress toward meeting the 2014-2022 RHNA.

Permitting progress as of December 2022. Source: HCD 5th Cycle 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.

Jobs & Housing in the Development Pipeline

As of January 2022, Santa Clara has 3.31 jobs in the development pipeline for every 1 housing unit in the development pipeline.

Pipeline as of January 2022. Information reported from City of Santa Clara.  The employment projections are derived by applying square-footage-per-employee factors to building floor areas by four building types: 250 square feet for office/R&D; 1,500 feet for hotels; 550 feet for retail/restaurant; and 2,500 feet for manufacturing/warehouse. All are figures applied to a building’s gross square footage.

Accessory Dwelling Units (ADUs)

All California cities and counties are mandated to permit ADUs and JADUs according to state law. The Legislature further updated ADU and JADU law effective January 1, 2021 to clarify and improve various provisions in order to promote the development of ADUs and junior accessory dwelling units (JADUs). These include allowing ADUs and JADUs to be built concurrently with a single-family dwelling, opening areas where ADUs can be created to include all zoning districts that allow single-family and multifamily uses, modifying fees from utilities such as special districts and water corporations, limited exemptions or reductions in impact fees, and reduced parking requirements. Please see the Accessory Dwelling Unit Handbook (PDF) for more information for local government bodies and homeowners interested in adding an ADU or JADU to their property. Our partner, the Housing Trust of Silicon Valley has kicked-off a major initiative, Small Homes, Big Impact to support ADU development throughout Santa Clara County, including outreach and education, and potential new financing mechanisms.

Source: HCD 2023 Housing Element Implementation and APR Data Dashboard.

Affordable Housing Policies

Housing Element Policies

The Housing Element of Santa Clara’s General Plan includes a number of policies promoting affordable housing development, including:

• Encouraging high densities in new housing development.
• Assisting affordable housing developers in getting access to funding and in assembling parcels.
• Expediting the entitlement process for affordable housing development proposals.
• Providing subsidy financing, when available.
• Providing a density bonus for affordable housing.
• Examining other means of promoting affordable housing development, including: leasing City-owned property to developers at nominal rates; subsidizing City fees; matching financial support provided by the Housing Trust; and purchasing land on behalf of nonprofit developers.

Inclusionary Housing and Commercial Linkage Fees

In February 2018, the City of Santa Clara updated its affordable housing requirements, including an inclusionary housing requirement for both ownership and rental housing, as well as commercial linkage fees for non-residential development.  

Residential Development

For sale residential homes will pay an affordable housing impact fee equal to the difference between the unrestricted appraised market value of the unit and the Affordable Sales Price of the unit, multiplied by the fractional amount due. Rental residential units will pay $22.22 per square foot.

• Ownership: 15% inclusionary requirement. Projects of fewer than ten units may either provide one dwelling at an affordable housing cost for a household earning up to 100% of AMI, or pay an in-lieu fee (in-lieu fees for fractional units – $30.00/sf for single family homes, $25.00/sf for townhomes, and $20.00/sf for condominiums)
• Rental: 15% inclusionary requirement. Projects of fewer than ten units may either provide an affordable unit or pay an in-lieu fee (in-lieu fee of $20.00/sf for fractional units)

The City Council may authorize a developer to provide a percentage of affordable units lower than 15%, if such units are restricted to extremely low, very low or low income households and would represent an equal or greater amount of value in subsidy. 

Non-Residential Development

• Office 20,000+ sf : $22.22/sf.
• Office under 20,000 sf: $11.11/sf.
• Industrial 20,000+ sf: $11.11/sf.
• Industrial under 20,000 sf: $5.56/sf.
• Hotel, Retail 5,000+ sf, Other: 5.56/sf. (retail <5,000 sf is exempt)
• Low Intensity Uses: $2.22/sf.

Additional Resources

• City of Santa Clara Affordable Housing Requirements Ordinance
• City of Santa Clara 2015-2023 Housing Element
• City of Santa Clara Nexus Study
• City of Santa Clara Housing and Community Services Division Webpage
• City of Santa Clara Planning Division Webpage