Which New Homes Were Built in Silicon Valley

With growing pressure on Silicon Valley cities to allow more high density housing it is not a surprise that more new condos were built in Silicon Valley than single family houses. Looking at the 4 largest residential new home builders, for homes built in 2020:

Toll Brothers Inc.2943230302
SummerHill Homes27247274
D.R. Horton Inc.472673
Robson Homes LLC4545

Perhaps if there is a surprise it would be that there were nearly 40% more townhouses built than condos. However, if you consider that most home buyers want 3+ bedrooms then it is consistent with the long term reality that land is expensive, maximize living space to land area, but build the living space that is wanted.

Until cities zone to allow taller buildings, townhouses are likely to continue being the most common home built. Also with the 4 largest builders only building 694 homes, new homes are not going to catch up with demand.

What about SB 9 which allows homeowners to subdivide and build duplexes? SB 9 doesn’t completely invalidate local zoning. It appears to provide a path around arbitrary building denials made by architectural review boards and planning departments.

With so few paths visible for new homes Silicon Valley real estate trends are likely to continue showing home prices climbing faster than incomes.

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