Local zoning laws and regulatory hurdles often slow down or completely block new developments. Companies like Apple, Google, and Intel are not just employers; they are economic gravity.
Why San Jose Real Estate Remains So Pricey Despite Market Changes
The Magnet Effect of Tech Prosperity The engine behind the cost of living is the dominance of the tech industry. High property values generate significant tax revenue for the city, funding excellent schools, infrastructure, and public safety.
To the west, the Santa Cruz Mountains form a nearly impenetrable wall. The answer is not a single cause but a powerful convergence of geographic limitations, industry dominance, and demographic pressure.
How Limited Housing Supply Drives Up Prices
Because the area is a commercial hub, the cost of goods and services is calibrated to the high salaries of the region. Until policies shift to allow for more dense, efficient housing, the gap between the number of people moving in and the number of homes available will continue to fuel high prices.
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