POLITICS
San Jose's Housing Plan: Is It Really Working?
San Jose, California, USAFri Aug 01 2025
San Jose is taking a close look at its housing plans. The city is reviewing its General Plan, which happens every four years. But there's a problem. The current plan might not be helping to build more homes. In fact, it could be making things worse.
Before 2007, San Jose built about the same number of homes as Seattle. But then, things changed. A new plan called "Envision 2040" was introduced. It aimed to build 170, 000 new homes by 2040. That's about 6, 000 homes a year. But there was a catch. The plan said these homes had to be very dense. At least 50 units per acre. This means tall buildings. And tall buildings cost more to build. They need steel and cement instead of wood. So, the homes become more expensive. And who wants to live in these expensive homes in San Jose? Not many people. So, developers aren't building them. As a result, San Jose is building only a fraction of the homes Seattle does each year.
The updated plan doesn't admit that the old plan isn't working. It says the old plan is "comprehensive and forward-thinking. " But it doesn't say how to build more homes that people can actually afford. Other cities, like Sacramento, have made changes to their plans. They've worked with experts to make their plans better. Why isn't San Jose doing the same?
San Jose has plenty of land. It could build the 7, 750 homes a year that the state requires. But last year, it only allowed 2, 000 homes to be built. To build more, San Jose needs to allow lower-cost, mid-density homes. These are homes with about 20 to 35 units per acre. And it needs to look at the 70% of the city that isn't zoned for housing. There must be some places where more homes can be built.
These changes aren't big. But they could have a big impact. Why aren't these changes being considered in the plan review?
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questions
What are the underlying economic and social factors that contribute to the housing crisis in San Jose?
How can San Jose incentivize developers to build more mid-density housing in areas where high-density housing is not feasible?
Is the state's housing requirement a ploy to force cities like San Jose into financial distress?
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