With major tech giants like Google and Facebook hiring thousands of new workers, San Jose home and apartment prices have skyrocketed and builders are having a hard time meeting the increased demand.
Metrostudy Reports show that housing prices have increased by 48.8 percent compared to last year. A staggering increase fueled by an economy revived by the success of nearby tech giants and an influx of new workers.
Builders are struggling to meet this demand as available land is scarce and development of new homes can be a lengthy process when faced with a strict permitting process and not enough laborers.
Data shows that land in San Jose has seen nearly 50 percent increases in the past two years, now ranging from $3-$4 million per acre.
You can expect these prices to continue to rise as bidding wars pick up. You can also expect development of more connected homes such as condos and townhouses in order to appease a denser population and limited space.
Michael Bain is an analyst with Move New Homes