By Robert Haugh

Santa Clara completed 2,685 housing units in 2025, more than any other city in Silicon Valley, according to state data reported by the Silicon Valley Business Journal.

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More than 9,000 housing units were completed across Silicon Valley last year. San Jose ranked second with 2,192 completed units.

Santa Clara Economic Development Director Reena Brilliot told the Business Journal that cooperation between developers and city officials helped produce the unusually high total. Project financing also played a major role, too.

Most of the new units were concentrated in the Clara District and the first phase of Gateway Crossings.

Brilliot said those projects secured financing before interest rates increased. 

Santa Clara officials do not expect the city to repeat its 2025 production level this year.

Brilliot said high construction costs make it difficult for developers to make projects financially viable. But she expects 2026 to remain strong because Santa Clara has approved a large pipeline of future housing projects.

Only four Silicon Valley cities completed more than 1,000 housing units in 2025. More than half of the region’s cities completed fewer than 150.

Morgan Hill was near the bottom of the list, completing just 35 units. Morgan Hill City officials say that number does not reflect the amount of housing now moving through its development pipeline.

Morgan Hill’s state-assigned Regional Housing Needs Allocation calls for the city to plan for 1,037 homes between 2023 and 2031.

John Lang, Morgan Hill’s housing and economic mobility director, said the city expects to reach that target this year based on permits issued in 2026. He said Morgan Hill completed more housing during the first half of 2026 than during all of 2025.

Santa Clara’s RHNA target exceeds 11,500 homes for the eight-year cycle. San Jose has the region’s largest target at more than 62,000.