UPDATE: A groundbreaking mixed-income housing development has just launched near the Berryessa BART Station, significantly boosting the housing landscape in North San Jose. This ambitious project will add 708 homes to the area, marking a crucial step in addressing the ongoing housing crisis.
City officials and the Facchino Family celebrated this milestone with a ceremonial cannon fire, officially kicking off the first phase of the Berryessa BART urban village on October 23, 2023. The 13-acre site at 1655 Berryessa Road will feature a blend of affordable housing, townhomes, and single-family residences, all within walking distance of a major transit hub.
“This project means unparalleled access to transit,” said San Jose Mayor Matt Mahan. “It will provide homes for families and opportunities for children to grow up and thrive in our valley.” The addition of these homes is vital for many families in Silicon Valley who have struggled to achieve the American dream amidst soaring living costs.
Originally, this site was home to a trucking company run by the Facchino family since 1931. After relocating their business in 1972, they started leasing the property to accommodate the builders of the Berryessa BART station. The city council had previously planned for a larger project of up to 850 apartments and condos, but due to challenges in the office market, the plans have been revised.
The new development includes 260 affordable apartments and 48 townhomes, with a portion designated for very-low income households earning between 30-50% area median income (AMI). The AMI for a family of four in Santa Clara County this year is $195,200. This means that 26 units will be set aside for very-low income households, 130 units for those earning between 50-80% AMI, and the remaining units will cater to moderate-income households.
Future plans for the development also include 338 market-rate apartments and an additional 62 for-sale units. “Once the BART station was completed, it was time to transition the property to a higher and better use,” said Erik Schoennaur, a land-use consultant involved in the project.
While much attention has focused on downtown San Jose, North San Jose is experiencing a surge of investment, including several data center projects. This area holds great potential for future housing production, with more projects in the planning stage. An upcoming urban village project could bring nearly 1,500 homes to the former Saukauye Family farm site.
City officials view this development as part of a broader vision for the Berryessa area, which could potentially accommodate over 4,800 new homes and additional job opportunities across a 270-acre area.
“This is about meeting community needs, not just maximizing profit,” stated District 4 Councilmember David Cohen. “We need affordable housing projects and a variety of options for our residents.”
Despite this positive development, San Jose is still grappling with significant challenges in housing production. The city is mandated to plan for 62,200 new homes by 2031, but production has lagged due to a tough business climate and high construction costs. In fact, San Jose has seen a staggering 68% decline in permit activity from 2020 to 2025, the highest drop among major U.S. cities.
To combat these issues, the city has unveiled new incentive programs aimed at reducing fees and taxes to encourage housing development. “Streamlining city processes is critical to making housing production easier and more affordable,” Schoennaur emphasized.
As the Berryessa urban village project unfolds, it represents a vital opportunity for San Jose to address its housing needs while enhancing community access to transit and local amenities. Residents and stakeholders are eager to see how this initiative will shape the future of North San Jose.
