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
  • 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.

Watch for

Builder upgrade pricing

Design-center upgrades are usually priced well above retail. Decide your must-haves before you tour the design center.

Watch for

HOA trajectory

New HOAs often start low and rise as the community's reserve fund catches up to real maintenance costs.

Watch for

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