Living in San Jose in the No. 4 spot. in US | What you get for $1MM in SILICON VALLEY


  • Inventory And Supply Charts

Living in San Jose in the No. 4 spot. in US | What you get for $1MM in SILICON VALLEY

Introduction to San Jose's Living Standards
 San Jose ranked fourth in the US for living.

Yeah. And once you get for a million dollars and then we're going to go through the inventory and month supply, et cetera, I redid it and it took me a little bit longer than I wanted to. And then I might do a little bit of a rant. All right, let's get moving.

There we go. Okay. 

Debunking the Ranking: The Realities of Living in San Jose

Report ranks, Bay area city is one of the best places to live by local experts or sorry, local experts say it doesn't add up. And I can tell you why there's a lot of reasons why affordability, right? How else can I explain it to you? Affordability. We have a huge epidemic of homeless and trash and governmental oversight.

That's not taking the money that they take from us and using it correctly. I E broken roads. Broken everything. So and again, it's not political. It's governmental It's the way they decide to use the money. So it's not the politicians. It's the Money the bean counters and everybody else inside each department saying this is how we've always done it and things need to change I don't have a problem with san jose.

It's not the best place in the bay area to live I'll tell you that for a fact but there's a lot of stuff that you have access to. You have access to social benefits. Which is another magnet for homelessness, right? And I have nothing wrong with the homeless.

That was awesome. I don't know what happened. I hope I'm still recording. Okay. 

The Pros and Cons of San Jose Living
Anyway, U. S. World Report ranks for the rankings for the 25th best places to live. San Jose's in the number four spot and it's based on housing affordability. Residents well being and job market. I'll give you a job market for a fact, right?

The number one spot was arm and armor, michigan I have a friend that lives there and then boulder colorado I have an aunt and uncle that live there and then madison was madison wisconsin and nobody wants to live there, right craig And portland maine, of course so The one thing you do have is if you have a high tech job, you're making good money, but all that money goes into cost of living.

We've talked about that in a couple of weeks last week about like it being 50, 60 percent of your wages to afford to buy a medium priced house.

We do have quick access to a lot of things. We don't have as much congestion as LA, right? It's not as spread out as LA or other.

other places, Dallas Fort Worth area. And quite frankly, if you want to go skiing on Saturday and then go to the beach on Sunday, you can do that. It's just a matter of a few hours, drive back and forth, completely up to you, how you want to do that. You have access to lots of different things in California.

My argument is that you have that everywhere else. Oh, but the weather yeah, it gets cold here. It doesn't snow, but it does get cold. California cold. It's a different kind of cold than if you're in the snow and the only way to explain that is if you live here and you understand that.

And we're finally getting rain. So we do have drought conditions quite often, but we're also the number 1 agricultural place in the, at least the United States, right? 70 percent of the agriculture that we grow goes to everywhere else in the U S

there was another piece here that I want to show you. 
Housing Affordability Crisis in San Jose

Scott Meyer, Lipton professor emeritus at San Jose state university, go Spartans. Doesn't re reflect the reality for most residents. Now this is a more of a social point of view. Affordability is extremely high here. You have to make a lot of money to be able to afford to live here.

Period. Having a job at McDonald's, getting paid minimum wage, it's not affordable to live here, which is why a lot of the fast food joints here are folding up. Rent's going up, cost of insurance is going up, cost of franchising is going up, and cost of labor is going up. That's why those fold.

That's just business sense, right? So yeah, it doesn't affect, it doesn't reflect a lot of it. And I know of families that live. One or two or three families living in one house to be able to afford to live here. It's just the fact of life. However, on the other side, there's a lot of other people that can't afford to live here and make good money.

And they're in the technical services, but they pay through the nose for everything, including food, including services and repairs and what have you. I know I'm paying like 200 to 50 an hour for my mechanic to fix cars, but that's because that's the cost of living here. It's just a fact of life. Sorry, I have a call coming in.

So middle class does struggle here and it's absolutely true. So yeah, absolutely. So when you're looking at world, and that's not 1. 52, I think it's 1. 52 size. Actually, yeah, we'll get to that in a minute. Almost double that of the 1st place city of 800, 000. Now Boulder, Colorado, 3 years ago wasn't 800, 000.

We've been at 1. 52 for a really long time. We've stalled and plateaued. Now, prices are going to continue to go up, but the median price, whatever that is, I think it's 1. 7. We'll continue to creep up just so you know, and we have this thing called measure E in place in San Jose that, in my opinion Is preventing houses from getting any more expensive.

For homeowners, this is a bad thing. E doubles the transfer tax or goes crazy expensive once you go over 2, 000, 000. And then there's a 5, 000, 000 tick and a 10, 000, 000 tick. Anyway, it's like a progressive tax that we put into place. We voted it in, which I didn't. I just don't, and this money that was supposed to be raised was supposed to go to worse homelessness.

And yet we still have a homeless problem. Anyway, the idea is once you realize you're buying a two and a half million dollars house and your options is Los Gatos Cupertino, or a $3 million House or San Jose, and it costs this much to buy a house, the transfer tax, and then when I go to sell it, it's gonna cost me that much versus Los Gatos, I'm gonna go to Los Gatos.

It's nicer. I don't have to deal with homeless. It's cleaners. Better run. So San Jose's in a world of hurt right there.

So yeah there's a culture shock or an expectation shock when you go to buy a house And you have all these wants and needs on your bucket list of things that you want for your house And you're like I'm getting what for this house and it costs this much, and it's a smack in the face to a lot of people because when you go to buy a one and a half million dollar house, you're expecting to buy a really nice house.

Not anymore. Things have changed. So just keep that in mind. So again, I can tell you for a fact, you go to Knoxville, Tennessee, you're not going to have the choices of restaurants and the different kinds of foods that we have here. We have so many different multiple cultures, so many amazing foods and so many dynamic people that you do have the opportunity to enjoy multiple different types of ethnic cuisine and it's amazing, right?

You don't get that and fly over states like Knoxville. You just don't. 

What $1 Million Buys You in Santa Clara County
Let's talk about what you get for a million dollars. In Santa Clara County now, Rahway, I'm picking out Raway because I just happened to see it. I used to live right by Rahway. I bought my first house on Plaza Inverno. Let me see. I think this is,

so let me open this up real quick so you can see it. I'm going to drop into the next scene so you can see a little bit bigger. So my first house was right here. So this one is a little tiny court right here. It's in the same complex. That was my house right here. If you want to look at it, this guy right here, I bought it for 225, 000 sold for 425, 000 or 450, 000.

Then we moved to where we're living now. That was 20, 20 years ago.

So if you want to know where it is specifically, that's how you're, that's the Santa Clara County. That's yeah, there's 85 and one Oh one. That's the area and this is a patio home. It's not even a, it's not a condo or town. It's like a townhouse. They're single family detached, but they're in an HOA.

I want to say they're like 35 years old now, 86, 40 years old. This is a three bedroom, three full bath, 1600 square feet, 38 years old. First day on market, a million dollars. Get that. I wish I kept it. I should tell my mom because this is actually the same model my mom lived in. She lived in another street down the road there.

These are great little starter homes. It's crazy. You have to say that, right? It's a great starter home. It's a well run HOA. Great people. But look, they really updated this house. They, this thing, so this is the exact opposite floor plan of my parents house.

I have to send this to them. This is beautiful. Really well done. This is going to sell really quick. That's a beautiful house. My parents lived, I'll open this up for you so you can see, on Otona Court right here. So we were walking distance to each other. And then she said, go to hell Vito, I'm moving to Folsom.

That's cool. Whatever it doesn't matter. This is their house right there. And she had an amazing view. She loved it and she hated moving to Folsom. Their house was nice, but that was cool. Anyway, there you go. 

Analyzing the Real Estate Market in Santa Clara County

Two things to talk about and just really quickly, I had to redo these numbers. I don't want to show you the county numbers because they're wrong.

Inventory And Supply Charts

I realized I didn't put in single family. So I'm redoing this chart right here. So don't look at it, but right here, this is single family single family homes, all the cities in Santa Clara County, as well as the red 1 is Santa Clara County. So you can have a baseline and then this is against the U S and obviously this one we talked about last year, last week, it's Las Altos Hills, and it takes a lot longer to sell 30 million houses than it does to spell.
So one in 3 million houses. So keep that in mind. Okay. 

Conclusion: San Jose's Place in the U.S. Living Standards

So today we talked about San Jose being the fourth best place to live in the U S if you got the money, you got the money. And if you got the money, I'll show you where to spend it outside of San Jose, because it's, they're much better places. Morgan Hill and Los Gatos and Cupertino Mountain View love Mountain View.

I've been spending a lot of time there too. We talked about what you can get for a 1, 000, 000 in Santa Clara County and the numbers, the charts here, the inventory we still have a low inventory compared to demand. We are seeing. Inventory numbers jump up a little bit, but not enough. Again, we need to be at 1, 900 to 1, 000 and we're at like two or 300.

So the faster we can get up to that number, the more the inventory will balance out with the demand and prices will level off. But until then, prices will continue to go up. I'm Vito with Abitano. Hope that makes sense. If you have any questions or what have you, let me know. We'll see you out there.

Vito Scarnecchia Real Estate Broker, Veteran, Dad DRE#: 01407676 408-705-6817 Website: update your home value: RELOCATION@ABITANO.COM FREE DESKTOP APPRAISAL If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents! Book appointments here: Home Buyers Course YT IG FB LI Blog POD Professional Photography by Kim E / Local Real Estate Market and Home Value Report Financial Intelligence Willow Glen's five most expensive homes

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