Last week, a client called to ask if there was a way to reduce summer cooling costs. From my experience, such questions often hide larger concerns. It usually means they are delaying a decision about whether to continue living in their single-family home or move to a place that requires less maintenance.

This client has lived in a single-family home near Silicon Valley for nearly 30 years and mentioned that summer cooling costs have noticeably increased in recent years. Initially, they thought it was just a matter of changing their rate plan.

First, looking at electricity rates, as of August 2026, the electricity rate in the San Jose area is about 41 cents per kWh. This is similar to PG&E's average bundled rate of 39.25 cents in March 2026. If they are on a time-of-use rate plan, peak rates apply from 4 PM to 9 PM, so if cooling is concentrated during these hours, the effective rate can feel much higher. In the past, running the air conditioning all day was not a significant burden, but now it has become necessary to pay attention to usage times.

Regarding home prices, the median sale price in San Jose is $1.5 million as of June 2026, based on a three-month average. Breaking it down by type, the average price for single-family homes is $1.7 million, while condos are around $717,500, showing a significant difference. Research indicates that to afford a median-priced condo, an annual income of $226,376 is needed, so even condos are not an easy choice in San Jose.

Property taxes are based on the purchase price according to Prop 13, and the annual increase is limited. If you are over 55, Prop 19 allows you to transfer the property tax basis from your current home to a new one, which can be done up to three times anywhere in California, effective from April 2021. The longer you have lived in your home, the more significant the benefit.

Here are the items to check: First, confirm how much the summer electricity bill is for the current single-family home using recent statements. Second, estimate how much the bill would decrease if moving to a condo or townhome, given the reduced cooling area. Third, compare the actual management fees of different complexes to see if HOA fees offset those savings. It's better to go through these three points in order rather than jumping to conclusions.

However, often the issue cannot be resolved just by changing the rate plan. A large single-family home inherently requires more cooling space, so no matter how efficient the system, the total usage will likely be higher than that of a condo or townhome. This means it's also worth considering the option of reducing the size of the home rather than just looking for a new rate plan.

I advised this client to gather their electricity bills from the past year to check seasonal usage patterns. This will provide a realistic picture of how much they could save by moving to a condo.

In high-cost areas like San Jose, simply moving to a condo can free up a significant amount of disposable income. However, if there is no plan for how to use this money, it can easily be squandered. Whether to keep it as a buffer for retirement living expenses or reinvest it elsewhere should be carefully considered based on personal circumstances.

Additionally, while San Jose has many neighborhoods with high school ratings, making it attractive for families with children, for those considering downsizing after retirement, prioritizing access to hospitals and public transportation over school districts tends to be more practical. Establishing such criteria can also help narrow down potential options.

Saving on cooling costs is possible with small measures like window films or smart thermostats, but fundamentally, the type of housing itself determines the cost structure. Before making a decision, it's advisable to check tax and HOA conditions with real estate and tax professionals. This article does not constitute investment or legal advice.