Lowest Median Prices in Santa Clara County Revealed

Introduction to Santa Clara County Prices.

Santa Clara County is the lively center of Silicon Valley.
It’s home to major tech companies, top universities, and one of the most competitive real estate markets in the U.S. Thanks to its great location, strong economy, and high quality of life, many people want to live here. But because of that, home prices have gone up a lot over the last ten years.

If you’re buying your first home, investing, or moving around the Bay Area, finding a cheap place in Santa Clara County can be really hard.
But good news — even though prices are usually high, there are still a few neighborhoods where homes cost less. These areas can be a great way to get started in the Silicon Valley housing market.

In this guide, we’ll look at the latest median home price trends across Santa Clara County.
We’ll also cover what affects these prices. Most importantly, we’ll highlight where you can still find the lowest median prices in 2025 — without giving up on convenience, quality of life, or long-term value.

Understanding Median Prices in Santa Clara County.

The median home price is the middle point of all sales — half the homes cost more, half cost less.
In Santa Clara County, prices vary a lot depending on the city or neighborhood. Things like nearby tech jobs, good schools, public transport, and local amenities all play a role.

As of mid-2025, the county’s median home price is about $1.45 million, slightly up from last year. This rise is due to low housing supply, strong demand, and more high-earning professionals moving in.

That said, not every corner of the county reflects this lofty figure. Several neighborhoods and cities offer median prices significantly below the county average, making them key areas for more affordable entry into the market.

Factors Affecting Median Prices

To understand why some areas have lower home prices, it helps to look at the bigger economic and geographic factors behind them.

1. Location Relative to Tech Hubs.

Proximity to major tech employers in cities like Mountain View, Palo Alto, and Cupertino often drives up prices. Generally, neighborhoods farther from these core locations—especially in the southern and eastern parts of the county—tend to be more affordable.

2. School District Ratings.

High performing school districts correlate with higher home values. Areas with average or developing school districts may offer better value for those without school aged children or investors not prioritizing education rankings.

3. Commute and Transportation.

Neighborhoods not directly served by Caltrain, BART, or major highways may be priced lower due to longer or less convenient commutes.

4. Age of Housing Stock.

Older homes or properties in need of renovation can bring down median prices, offering opportunity for buyers willing to invest in upgrades.

5. Local Development and Zoning.

Areas with more multi-family housing or mobile home communities often reflect lower median values but may appeal to renters or first time buyers.

Trends in the Current Market.

Santa Clara County in 2025 is experiencing a mixed market:

Inventory remains low, with many homeowners holding onto existing mortgages with sub 4% rates.
Interest rates have stabilized, encouraging cautious optimism among first time buyers and investors.
Urban exodus trends have slowed, and cities are seeing a rebound in demand due to hybrid work policies and desire for community amenities.

This has created a seller’s market in premium neighborhoods, while value focused buyers are gravitating to more affordable areas.

Locations with the Lowest Median Prices.

Here are some of the most affordable cities and neighborhoods in Santa Clara County, based on the most recent 2025 data:

1. Gilroy.

Median Home Price : $900,000
Located at the southern end of the county, Gilroy is known for its agricultural roots, family friendly environment, and more spacious homes.
It offers excellent value for buyers seeking more land, newer homes, and a small town vibe while still being within commuting distance of San Jose.

2. Morgan Hill.

Median Home Price : $950,000
A growing community south of San Jose, Morgan Hill features vineyards, outdoor recreation, and a revitalized downtown.
It’s increasingly popular among remote workers and buyers priced out of the central Valley, with modern developments and good schools.

3. East San Jose.

Median Home Price : $980,000
Neighborhoods like Alum Rock and Evergreen offer lower prices compared to other parts of San Jose, along with cultural vibrancy and accessibility to BART and Highway 680.
Homes here may be older but provide opportunities for remodeling and investment.

4. Milpitas.

Median Home Price : $1.05 million
While not the lowest, Milpitas offers competitive prices given its proximity to major tech firms and convenient access to the East Bay and San Jose.
The area also has a strong rental market and high rise developments appealing to young professionals.

5. South San Jose.

Median Home Price : $1.1 million
Includes neighborhoods like Blossom Valley and Santa Teresa, which offer suburban charm and access to hiking trails, parks, and shopping centers.
Prices are significantly lower than central and west San Jose, while still within city limits.

Areas to Watch for Future Growth.

Some lower priced areas in Santa Clara County also show strong potential for appreciation due to planned development, improved transportation access, or changing demographics:

Downtown Gilroy & Morgan Hill : Redevelopment plans and new construction are driving interest.
Berryessa : The BART extension is making this area more attractive to commuters.
Milpitas Transit Area : Near the VTA and BART station, with large-scale residential and commercial projects underway.
East San Jose near Capitol Corridor : Infill development and community investment are improving this area’s prospects.

Conclusion and Next Steps.

Despite its reputation for high home prices, Santa Clara County still has a few neighborhoods that are relatively affordable.
Gilroy, Morgan Hill, Milpitas, and East San Jose give buyers a more affordable way into the market.
With smart timing and planning, these areas could also offer strong future returns.

Next Steps for Buyers:

Define your budget and financing options : Get pre-approved to understand your purchasing power.
Explore value neighborhoods in person : Spend time walking the streets, visiting local parks, and checking commute routes.
Consult a local real estate expert : Agents with Santa Clara County experience can provide insight into micro markets and investment potential.
Act promptly when value listings appear : Lower priced homes often attract multiple offers and be prepared to move quickly.

The path to homeownership in Silicon Valley may be challenging, but it’s far from impossible. With the right research and strategy, you can find a home in Santa Clara County that fits your budget, lifestyle, and future goals.