Redwood City to San Jose: A Guide to the Major Projects Transforming the South Bay Real Estate Market

02/19/26

Silicon Valley is currently in the midst of a significant residential transformation. As we move through 2026, the shift from office-centric urban planning to high-density, transit-oriented housing is accelerating. From Redwood City to San Jose, these projects aren't just adding units; they are redefining how we live and work in the region.

Here is a look at the key developments currently breaking ground or hitting major milestones.

🏙️ Redwood City & San Carlos: 11 El Camino Real

A landmark project in San Carlos is finally taking flight. Replacing a former CVS pharmacy, this six-story luxury apartment complex will feature 251 units. Located in the heart of the San Carlos/Redwood City border, it represents the continued densification of the historic El Camino Real corridor.

  • Key Stats: 251 units, 281 parking spaces, and a mix of rooftop terraces and work-from-home suites.

 

🏘️ Woodside & Portola Valley: Village Square (884 Portola Road)

Even in the more rural enclaves of the Peninsula, redevelopment is taking center stage. The proposed reimagining of this aging commercial site aims to bring a modern, Mixed-Use High-Density project to the area.

  • The Vision: The current plan includes potential for 25 residential units, balancing the need for local housing with the unique character of Portola Valley.

 

📜 Atherton & Menlo Park: The Impact of SB 79

Atherton, known for its sprawling estates, is entering a new era due to Senate Bill 79. Effective July 1, 2026, this state law mandates high-density development near transit stops in "urban transit counties." Atherton is currently drafting local standards for seven specific parcels to accommodate this mandate.

  • Focus Areas: Glenwood Avenue (110, 120, 124), Laurel Street (135, 147, 151), and Victoria Drive (99).
  • The Mandate: The town cannot impose height limits of less than 75 feet or densities of less than 120 units per acre for these sites.

 

🏗️ Palo Alto & Los Altos: 330 Distel Circle

Los Altos is celebrating a major milestone with its first-ever 100% affordable housing project. Developed by EAH Housing, the project is currently in the "module setting" phase, a high-tech construction method where pre-built units are craned into place.

  • Timeline: Construction began in July 2025; completion and lease-up are expected by January 2027.
  • Impact: 90 units for households earning 30–80% of the Area Median Income (AMI).

 

🌳 Santa Clara & Cupertino: Santa Clara Park

Developed by the Irvine Company, this massive 25.7-acre project is one of the largest in the region. Construction activity is ramping up significantly in early 2026 as older commercial leases on the site expire.

  • Scope: 1,792 apartments spread across five 5-story buildings.
  • Lifestyle Feature: The development includes a 4.2-acre public park, aiming to create a "live-work" ecosystem in the employment-heavy Freedom Circle area.

 

🏙️ San Jose: Fountain Alley / 35 South Second Street

In a move reflecting the changing needs of Downtown San Jose, the Bjarke Ingels Group (BIG) has updated its plans to shift almost entirely from office space to residential.

  • The Towers: The project now features two soaring towers (27 and 28 stories) providing 768 units.
  • Urban Integration: This high-rise development will anchor the Fountain Alley area with ground-floor retail and a pedestrian-oriented plaza.

 

🔑 Ready to Make Your Next Move?

Thinking about selling or buying a house? Connect with the Local Experts:

For expert guidance on buying or selling your house, contact Caviness, Straub & Associates today!

📞 Call Now: (650) 288-3230
📧 Email Us: [email protected]

Brett Caviness // DRE01935984
Don Straub // DRE01896844
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