The San Jose housing market is famously competitive and ranks as one of the most expensive in the United States. The median home price typically exceeds $1.3 million, making homeownership a significant challenge for middle- and lower-income residents.
Housing stock consists largely of mid-20th-century single-family homes, though recent decades have seen a push toward higher-density development, including apartment complexes, condominiums, and townhomes near transit corridors. Rental costs are correspondingly high. The city is actively grappling with a severe affordable housing shortage and homelessness crisis, prompting new policies aimed at increasing urban density and funding subsidized housing projects.