Last week, I had the opportunity to consult with a Korean family looking for a home in San Jose. I showed them a few listings, and the moment they saw the prices, they sighed.

"I really like the house, but the numbers are terrifying." This statement still sticks with me. In fact, it's a common reaction among those searching for homes in San Jose.

San Jose is the central city of Silicon Valley. Major IT companies like Apple, NVIDIA, Google, and Meta are nearby, and the school districts are good, so there is always high demand. This is why home prices don't easily drop. As of 2026, the median price for a single-family home is estimated to be around $1.5 million, making it one of the most expensive housing markets in the U.S.

Now, let's do some actual calculations. Assuming you buy a $1.5 million home and put down 20%, you would need to prepare $300,000 upfront. The remaining loan amount would be $1.2 million. If we calculate this with a 30-year fixed rate of 6.75%, the principal and interest would amount to about $7,783 per month.

But that's not all. If we estimate the property tax in Santa Clara County at about 1.2% annually, that adds approximately $1,500 per month. You should also consider home insurance, which is around $180 per month. When you add it all up, you would need to spend about $9,467 per month just on housing. This figure does not even include maintenance or management costs.

So, how much income would you need to comfortably afford a home at this price? Applying the commonly used DTI of 28%, you would need a monthly income of about $33,800. When converted to an annual salary, that amounts to approximately $405,000. Just looking at the numbers makes it clear that the reality is not easy.

Of course, there are engineers in Silicon Valley who earn between $300,000 and $500,000. However, even in those cases, excluding stock options or bonuses, the burden of home prices is significant. Moreover, it is not common for one person to earn this level of income. Most people combine incomes with a partner or use long-saved assets to purchase a home.

The median household income in Santa Clara County is among the highest in the U.S., but it is still often insufficient to buy a median-priced home. As a result, many Korean families choose to increase their down payment to 30-40% or seek help from their parents to reduce the loan amount. This is to lower their monthly payments as much as possible.

Another option is to broaden your search area. Instead of insisting on the center of San Jose, if you head south to Morgan Hill or Gilroy, you can buy a much larger home within the same budget. Of course, the downside is a longer commute, but many families are willing to endure the extra travel time to reduce housing costs.

I often say during consultations, "You don't buy a house because you want it; you buy it based on your ability to sustain it." Even if you can manage for the first few years, if interest rates rise or unexpected expenses arise, the burden can become much heavier.

San Jose is undoubtedly a great city to live in. The education level is high, and there are many job opportunities. However, just because it's a good city doesn't mean you have to stretch yourself to live there. In fact, living in an area that matches your income can be a wiser long-term choice.

If you are seriously considering buying a home, I recommend checking the latest listing prices on Redfin or Zillow, and using a mortgage calculator like Bankrate to input your down payment and interest rate conditions. The difference between what you think and the actual numbers can be quite significant. Ultimately, the right home for you is not the most expensive one, but the one where you can live comfortably for a long time.