Why Invest in Silicon Valley Real Estate?
Silicon Valley is the most profitable region in the nation. In fact, this year The Guardian stated that if Silicon Valley (which produces $128,308 per capita in annual gross domestic product) were its own nation, it would “out-produce almost every other nation on the planet.” Silicon Valley is estimated to generate $275 billion per year. At this rate, the job market is continually strong, with many Northern California residents working in the region. Silicon Valley has as many as 3.1 million residents. It encompasses about 1,854 square miles surrounding the Santa Clara Valley.
When you think of Silicon Valley as the global hub for tech and innovation, the big three corporations probably come to mind: Apple, Google (now Alphabet), and Facebook. The truth is there are many other tech giants in the region; those ranked in the top 100 of the Fortune 500 include: Intel (#43, HQ in Santa Clara), HP (#55, HQ in Palo Alto), Cisco Systems (#64, HQ in San Jose), and Oracle (#81, HQ in Redwood City). The region has over 1.67 million jobs, many new startups pop up each year, and the average household income is just shy of $140,000.
As far as rental rates in the region, the average price of a 1-bedroom is $1,800–$2,200, while a 3-bedroom apartment averages $2,900–$3,360. Average home prices in the region are more than $1.2 million, but they vary depending on the city: Palo Alto’s median sale price is $2.7 million while San Jose’s median sale price is $995,000 (an 8.1% decrease year-over-year).
- Average annual income in the region was $140,000 in 2018, compared to the state average of $81,000 and the national average of $68,000
- Median home sale prices reached almost $1.2 million in 2018
- Both Silicon Valley and San Francisco are in the top four most expensive residential markets in California; median home value in SV is
- Facebook donated $25 million to pay for subsidized housing for teachers in the Bay Area
- Silicon Valley makes up almost 11% of California’s GDP, compared to 5% by San Francisco
- Stanford University ranks #6 in U.S. News & World Report’s 2020 top National Universities
- San Francisco Bay Trail, a 500-mile walking and cycling trail around San Francisco and all nine Bay Area counties
Northwest Silicon Valley
Employees in Silicon Valley make higher-than-average salaries but also pay much higher-than-average housing costs. The northwest region of the valley consists of San Mateo, Foster City, Menlo Park, Palo Alto, Foster City, and Redwood City, among others. Its proximity to San Francisco make it a great suburban community for commuters not wanting to live in the city proper. The Palo Alto School District is ranked the #2 Best School District in the Bay Area by Niche, followed by San Mateo Union High School District in the #9 spot.
- Facebook’s campus in Menlo Park
- HP Garage (the birthplace of Silicon Valley), home of Hewlett-Packard when it first started, in Palo Alto
- Google Garage, home to the tech giant during its early days, Menlo Park
- Stanford University near Palo Alto
- Redwood Highway - 175-mile drive through Coastal Redwoods, which can grow up to 350 feet high
Northeast Silicon Valley
Sunnyvale and Santa Clara have a combined population of about 275,000 people. Both are great options for families and are centrally located to different cities in Silicon Valley. Median home prices in Santa Clara top $1.2 million (the region’s average), while Sunnyvale homes sell for an average of $1.55 million. The Santa Clara School District ranks #6 among best schools in the Bay Area, according to Niche.
- Santa Clara Central Park is a popular park with a pool and recreational areas
- Great America amusement park in Santa Clara
- Las Palmas Park in Sunnyvale
- Sunken Gardens Golf Course in Sunnyvale
Southwest Silicon Valley
In the southwest, find popular cities such as Cupertino, Mountain View and Los Altos, all of which are great cities to live in with plenty of amenities and things to do nearby. Mountain-View Los Altos is the #3 Best School District in the area (Niche).
- Apple Campus in Cupertino
- Google campus in Mountain View
- Computer History Museum in Mountain View
- Moffett Field/NASA Research Center - Hangar One is one of the largest free-standing structures, housing the USS Macon blimp
- Cupertino - Apple Campus
- Los Altos is home to Steve Jobs’ childhood home, in which he started Apple in his parents’ garage
Southeast Silicon Valley
The southeastern cities are considered South Silicon Valley and include Campbell, Los Gatos, and San Jose closer to central Silicon Valley, with Morgan Hill and Gilroy offering a more suburban environment further south (they are also ranked #10 and #11, respectively, for Best School Districts in Santa Clara County by Niche).
Average home prices in Campbell and Los Gatos are well over $1 million ($1.2 in Campbell and $1.8 in Los Gatos), but you can find single-family homes in San Jose, Morgan Hill, and Gilroy for under $1 million, with Gilroy home prices averaging just over $839,000.
- Happy Hollow Park & Zoo in San Jose
- The Tech Interactive in San Jose
- Winchester Mystery House in San Jose
- Los Gatos Creek County Park
- Gilroy Garlic Festival is held annually in the summer
- Villa Mira Monte estate with museum and garden in Morgan Hill
- Anderson Lake County Park - 3,000 acre park in Morgan Hill
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