Home Buying in Alum Rock>Question Details

Bharti BB, Home Buyer in San Jose, CA

Why property Rates are cheaper in Alum Rock then in Santa Clara?

Asked by Bharti BB, San Jose, CA Wed May 1, 2013

The homes are bigger with good amenities in Alum Rock and similar homes are like 100k extra in Santa Clara? Could someone explain, why?

Help the community by answering this question:


The schools are probably the most important singular factor. However, there are other factors that contribute. In Santa Clara, depending on your proximity to the new 49ers Stadium which is scheduled to open next Summer will play a large role. Not only is the Stadium coming, but a luxury hotel complex built by Joe Montana and partners, and now the Santa Clara Muni Golf and Tennis may be converted in to a mega shopping entertainment complex (similar to Santana Row but 10x larger), making the Stadium Area a huge draw of people with money to spend. Just like the neighborhoods near Santana Row saw a rise in home prices, residents near this area will likely see their prices shoot up.

Just my thoughts. Hope it shed some light.

Steve Mun Group
3 votes Thank Flag Link Wed May 1, 2013
Thank you Steve. This is really good information to have.
Flag Wed May 1, 2013
Schools and commute time to jobs are two key factors.

A greater distance from most work places means that there are more choices of homes. Most people do not want to spend time in commute traffic but will if they can get a better house at the same or lower price.

Alum Rock real estate statistics are at

Santa Clara real estate statistics are at

Another factor that is harder to judge is that investors are often attracted to lower priced homes because the income per dollar invested tends to be a little higher. Some investors sat on their money during the economic downturn then jumped in when they felt the time was good. Those that weren't sitting on a significant amount of cash may have been hurt by the downturn enough that they haven't returned to investing in real estate yet. Investment properties are having somewhat mixed results ... which might be slowing the recovery of lower priced homes.

Juliana Lee
Top 2 agent nationwide at Keller Williams Realty, the nations largest
Cell: 650-857-1000

Over 30 years experience
Over 1,000 homes sold in Santa Clara and San Mateo Counties
Web Reference: http://julianalee.com
2 votes Thank Flag Link Wed May 1, 2013
To be honest it is because it is "ghetto" in Alum Rock. Its not somewhere you want to go outside after dark at all. Santa Clara is just a nicer area
2 votes Thank Flag Link Wed May 1, 2013
Hi Courseload,

Property prices in the Bay Area are driven by the quality of schools. The better the school (API score) the more expensive the property prices. This is why similar homes in Santa Clara are much more expensive than in Alum Rock. And why similar homes in Cupertino are more expensive than Santa Clara.

Parents are willing to spend more for homes to guarantee the future of their children with better education. Going to a school in Cupertino or Palo Alto would better the chances of a child being accepted to Stanford or UC Berkeley.

Hope this helps
2 votes Thank Flag Link Wed May 1, 2013
Thank you Ricardo. This info surely helps.
Flag Wed May 1, 2013
convenience to major job center. Crime rate, schools.
0 votes Thank Flag Link Mon Jul 14, 2014
Hi courseload

santa clara is middle of everything which connects company multiple freeway etc.
0 votes Thank Flag Link Mon Sep 2, 2013
Hi Buyers,

You got a few great answers below. Just in case you would like to research schools in Alum Rock and Santa Clara, you can visit my website at http://lamsondang.com, click on School API Score.
You can also use "Find A Home" to search for current Active Listings on the market. This tool is connected to Pro-MLS, so it's updated daily.
Thanks and Best wishes,

Lamson Dang
R.E. Broker
Web Reference: http://lamsondang.com
0 votes Thank Flag Link Wed May 1, 2013
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