San Jose's Rapid Housing Construction Causes Concerns Of Overbuilding
SAN JOSE (KCBS)— The demand for additional housing in Silicon Valley is producing results. Everywhere you turn in downtown San Jose, Japantown, and on North First Street, new apartment complexes are being built. Some fear overbuilding, which could create a new housing bubble.
12,000 units are either under construction or recently completed. Santa Clara's Assessor Larry Stone said that could be too many.
"It's a very strong and robust market, but at some point in time, the economy is going to level off as it always has and then [the question is] will there be too many apartments having been built?" he said.
San Jose Mayor Chuck Reed doesn't agree.
"Demand is high and as long as the economy stays strong, the demand is going to stay strong. Traditionally in Silicon Valley we have nowhere near met the demand for housing, which is why people are living farther and farther out every year. The demand we can meet here is only part of it," Reed said.