New Construction
New construction for Bay Area first-time buyers
Builder communities are one of the more realistic entry points for first-time buyers in the Bay Area. Here's where they're active and what to check before you sign.
Trade-offs
New construction vs. resale
Why buyers choose new
- Builder financing incentives and rate buydowns
- New systems and appliances, fewer surprise repairs
- Warranty coverage on major components
What to weigh
- Often smaller lots than comparable resale homes
- HOA dues are common and can rise
- Mello-Roos or other special tax assessments in many communities
By city
Where builders are active
San Jose
City page- Downtown and North San Jose condo/townhome communities
- Infill townhome projects along Berryessa and Alum Rock
- Master-planned pockets in South San Jose
Santa Clara
City page- Transit-oriented condos near Santa Clara station
- Mixed-use townhome projects near the El Camino corridor
Milpitas
City page- Transit-village condos near Milpitas BART
- Townhome communities on the former industrial corridor
Fremont
City page- Warm Springs / South Fremont transit developments
- Infill townhomes near Centerville and Irvington
Morgan Hill
City page- Master-planned single-family communities on the east side
- Small-lot detached and townhome phases downtown
Gilroy
City page- Active builder subdivisions in west and south Gilroy
- Townhome phases near downtown
Builder communities and phases change often — confirm active availability directly with the builder.
Before you sign
What to check on any new-construction contract
Mello-Roos and special assessments
Many new communities carry extra annual taxes on top of standard property tax — ask for the current rate and payoff schedule.
Builder upgrade pricing
Design-center upgrades are usually priced well above retail. Decide your must-haves before you tour the design center.
HOA trajectory
New HOAs often start low and rise as the community's reserve fund catches up to real maintenance costs.
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