When Korean families consider moving to San Jose, the first question they often ask is how much home prices have increased over the past few years.

According to Zillow data, the median home value in San Jose was about $1.15 million in early 2021, and by 2026, it has surpassed $1.452 million. The increase over five years is about 26 percent, which may seem low compared to the national average cumulative increase of 35-45 percent, but this should be viewed in light of the fact that the price in 2021 was already very high.

Year by year, prices showed steady strength until 2021, but in 2022, a sharp increase in interest rates and news of layoffs at major tech companies led to a noticeable price adjustment between 2022 and 2023. Starting in 2024, a gradual recovery began, supported by the performance and hiring expansion of AI-related companies, and in the past year, there has been a slight decline of about 2 percent as the market catches its breath.

To understand the price trends in this city, one cannot overlook the connection to the Silicon Valley tech industry. The steady influx of high-income engineering talent and chronic housing supply shortages have long supported prices, and recently, the hiring expansion of AI-related companies has acted as a new demand stimulus.

The first concern that arises is whether it is the right time to buy in such an expensive city. San Jose is already one of the most expensive places in California, and the reality is that there is a significant entry barrier.

Future prospects should be approached cautiously. When the employment cycle in the tech industry is strong, price rebounds can be substantial, but conversely, if the industry contracts, the adjustment may be larger than in other regions.

For Korean households, the excellent school districts and proximity to work in San Jose remain attractive, but it seems wise to make a decision after thoroughly considering income stability and long-term residency plans. If considering selling, I would recommend looking at the broader picture of hiring trends in the AI industry rather than just the recent slight adjustments.