SANTA CLARA (KCBS) — While Santa Clara is leading the state when it comes to surging real estate values – largely due to the booming local tech economy – there’s growing concern new housing projects may be built on a bubble.
In 2013, Santa Clara County experienced over eight percent growth in assessed real estate value, an increase of over $26 billion for both residential and commercial properties.
Despite the rapid growth, however, some see a downside.
There is growing concern that the apartment market could be overbuilt and that affordable housing—which is always challenging in pricey Silicon Valley—will become further out of reach for working-class families.
“There also is a potential downside in that we tend to overdo things in Silicon Valley,” County Assessor Larry Stone told the San Jose Mercury News.
“I’m concerned that the apartment market could get overbuilt quickly. Everything happens so fast in Silicon Valley. We’re always first and fastest, good or bad, up and down.”
The state Board of Equalization reports real estate price hike is the highest in California with the tremendous job growth in Silicon Valley being the biggest factor.
Office and apartment buildings are quickly filling up. According to the Mercury News, some 8,000 new apartments units have been built or are under construction in San Jose alone.
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