Relocating to Silicon Valley? What to Know

The South Bay Area is the southern portion of the larger San Francisco Bay Area, encompassing several cities in Santa Clara County. It is home to Silicon Valley, one of the world’s leading tech hubs. While the exact boundaries can vary depending on who you ask, it is generally understood to include the region surrounding San Jose and extending southward. Some will tell you that the South Bay begins in Sunnyvale, while others might place the line further north, at the county divide between Palo Alto and Los Altos. No matter where the boundaries lie, the South Bay Area offers something for everyone, whether you’re looking for luxury living, a quiet suburban lifestyle, or a more affordable option that still keeps you close to Silicon Valley.

San Jose: An Anchor Point

No matter where you draw the line, one thing is clear: Silicon Valley is anchored by San Jose. In San Jose, you'll find warmer weather, more spread-out suburban cities, and a vibrant tech scene. As the largest city in Northern California, it boasts a diverse range of neighborhoods, a booming tech industry, and a family-friendly vibe. From luxury downtown apartments to suburban homes in areas like Willow Glen, San Jose offers a variety of housing options. For families, neighborhoods like Almaden Valley offer great schools and scenic views, while places like Santana Row cater to young professionals with trendy shopping, dining, and nightlife.

Let’s Talk Santa Clara

Santa Clara, located just north of San Jose, is another key player in Silicon Valley. Don't get it twisted... Santa Clara County primarily makes up Silicon Valley, but the City of Santa Clara is within it. Known for Levi’s Stadium and being home to several major tech companies, Santa Clara offers a central location for commuters and families. The growing Koreatown district brings a vibrant mix of Korean culture, and the city’s central position makes it an ideal spot for those who need easy access to the rest of Silicon Valley.

Which Part of the South Bay Area is Best to Live in?

Choosing the ideal place to live in Silicon Valley can be overwhelming, given the range of options available. Where you decide to settle will depend on various factors unique to you—whether it's proximity to work, access to nature, or the type of community you’re seeking. To help, we've compiled a list of some of the top cities and towns to consider in the South Bay - in no particular order!

1. Los Gatos
   This town is synonymous with luxury, boasting a historic downtown, access to nature, and a close-knit community vibe. Nestled at the foothills of the Santa Cruz Mountains, Los Gatos offers the best of small-town charm while still being within striking distance of Silicon Valley. Though it's one of the pricier areas, Los Gatos is ideal for those who want excellent schools and a tight-knit community with plenty of natural beauty.

2. Monte Sereno
   Known for its large properties and quiet streets, Monte Sereno is a small, exclusive town that offers a private lifestyle while still being just minutes from downtown Los Gatos and the tech hubs of San Jose. With a population under 4,000, Monte Sereno offers a peaceful, close-knit atmosphere. The town has no commercial zoning, meaning residents often rely on nearby towns for amenities, making it an ideal choice for those seeking tranquility.

3. Saratoga
   Saratoga is a perfect blend of natural beauty and upscale living. Famous for its wineries, highly ranked schools, and cultural venues like the Mountain Winery and Montalvo Arts Center, Saratoga offers a rich history and access to hiking trails in places like Sanborn County Park and Big Basin Redwoods. With its sense of community and proximity to Silicon Valley’s tech jobs, Saratoga is an excellent choice for those seeking a luxurious lifestyle in the South Bay.

4. Los Altos
   Known for its family-friendly atmosphere and top-tier schools, Los Altos is one of the most desirable places to live in Silicon Valley. The town features a quaint downtown with charming boutiques and local dining options, and its proximity to tech hubs like Palo Alto and Mountain View makes it an attractive spot for professionals. Despite high home prices, its safe neighborhoods and access to outdoor recreation, such as Rancho San Antonio Preserve, make it a fantastic place for families.

5. Los Altos Hills
   Offering sprawling estates and an exclusive feel, Los Altos Hills provides a more rural environment while remaining close to the tech corridors of Silicon Valley. With strict zoning laws in place to preserve its low-density residential character, the area features breathtaking views of the Santa Cruz Mountains. While Los Altos Hills is one of the more expensive areas, its blend of privacy, open space, and proximity to Stanford University and business centers make it a highly desirable location.

6. Palo Alto
   Renowned for its prestigious reputation, Palo Alto is a standout South Bay city known for exceptional schools, upscale neighborhoods, and its vibrant downtown area. A key feature of Palo Alto is its proximity to Stanford University. Residents enjoy bike-friendly streets, abundant park access, and employment opportunities with tech giants like Google and Facebook. For those who seek intellectual stimulation in a laid-back West Coast environment, Palo Alto is a top choice.

Where in the South Bay Area is it Cheapest to Live?

While the South Bay Area is notorious for its high cost of living, there are still some towns that offer more affordable options without compromising access to job opportunities and Silicon Valley’s network.

1. Campbell
   A more affordable option in Silicon Valley, Campbell strikes a balance between city life and suburban charm. The downtown area is lively with restaurants, coffee shops, and a popular farmers’ market. It’s also well-connected to the tech centers of San Jose and Santa Clara, and recreational spots like the Los Gatos Creek Trail are nearby. If you’re seeking a vibrant community without the high costs of neighboring cities, Campbell could be your ideal place.

2. Milpitas
   Located just north of San Jose, Milpitas offers more affordable housing than many of its neighbors while still providing easy access to Silicon Valley. Though slightly more expensive than other affordable areas, Milpitas is still one of the most budget-friendly cities in the South Bay. With good schools, ample parks, and favorable weather, Milpitas is a solid choice for families and tech workers alike.

3. Morgan Hill
   Situated on the southern edge of Santa Clara County, Morgan Hill offers a more affordable cost of living compared to other South Bay cities. The town has a relaxed atmosphere, with wineries, hiking trails, and a charming downtown area. If you're willing to commute or work remotely, Morgan Hill offers great housing options while still being within reach of Silicon Valley’s tech jobs.

Ready to make a move?

The Bouja Swenson Group brings a wealth of knowledge pertaining to Silicon Valley cities and what they have to offer. To view our current listings, visit our Featured Properties page.