San Jose City Council Advances Policy Overhaul to Accelerate 25,000 Transit-Oriented Homes

SAN JOSE, CA — The San Jose City Council voted 10–1 to advance the 2026 Urban Village Density Modernization Framework, directing the Planning Commission to prepare citywide zoning code amendments that permit high-density residential development on aging commercial strip malls and auto dealerships along major transit corridors.

Transforming Underutilized Retail into Transit-Connected Communities

The policy roadmap targets commercial boulevards along Santa Clara Street, Alum Rock Avenue, and Stevens Creek Boulevard, allowing building heights up to 8 stories by right for projects reserving 20% of units as affordable workforce housing. Planning economists project the streamlined zoning will unlock private financing for over 25,000 transit-oriented homes near Valley Transportation Authority (VTA) light rail and future BART extension stations.

Mayor Matt Mahan stated that San Jose cannot solve Silicon Valley’s housing crisis with incrementalism, demanding bold upzoning that turns asphalt parking lots into vibrant homes.

Silicon Valley Leadership Group and Community Feedback

The Silicon Valley Leadership Group and regional tech employer coalitions endorsed the density plan to expand middle-income housing near corporate transit corridors.

Neighborhood associations secured enhanced setback requirements and tree canopy preservation guidelines.

Final Zoning Code Adoption Schedule

The formal text amendments will return to City Council for binding adoption in November 2026.