The 11 Best Places to Live in the South Bay Area

The South Bay Area of California continues to be one of the most sought-after places to live, and for good reason. It's a powerhouse economic engine thanks to its thriving tech industry, mild weather, and reasonable proximity to California's unparalleled nature scene. From bustling cities like San Jose to sunshine-drenched suburbs, this region offers options for anyone looking to settle in the heart of Silicon Valley. If you're someone looking for city life on the West Coast, family-friendly neighborhoods, or more affordable housing options, there’s the perfect city for you. In this guide, we’ll explore the 11 best places to live in the South Bay Area.

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

If you're looking for the best places to live in the South Bay, the number of options can be overwhelming. Choosing where to live is a personal choice, with every factor weighing differently for every person. We offer our services all around the South Bay Area because your home deserves the best—no matter what city best suits you. Below, we've assembled a list of the best places to choose from. 

1. Palo Alto

One of the most prestigious South Bay cities, Palo Alto is known for its excellent schools, upscale neighborhoods, and vibrant downtown. In fact, it's also known for one particular school: Stanford University. Residents of Palo Alto thrive in its bike-friendly streets, year-round park access, and jobs with tech giants like Google and Facebook. It's widely considered one of the best places to live in Silicon Valley, especially if you like to be challenged intellectually while still keeping to the West Coast pace of life.

2. Los Gatos

Los Gatos is known as one of the most desirable towns in Santa Clara County, famous for its upscale atmosphere, historic downtown, and access to nature. Los Gatos is located right at the foothills of the Santa Cruz Mountains and has a small-town feel with all the amenities of being close to Silicon Valley. Though living in Los Gatos comes with a high price tag, it is one of the best places to live in the South Bay Area if you're looking for excellent schools and a strong sense of community.

3. Los Altos

Los Altos is a top-tier community in Silicon Valley, also known for its excellent schools and family-friendly environment. The town features a charming downtown with local boutiques and dining, and its proximity to tech hubs like Palo Alto and Mountain View makes it a prime location for professionals. Though home prices are on the higher side, its safe neighborhoods, strong community feel, and easy access to outdoor recreation, such as the nearby Rancho San Antonio Preserve, make it one of the most desirable places to live in the South Bay Area.

4. Los Altos Hills

Los Altos Hills is famous for its sprawling estates and high-profile residents, offering a more rural setting without being far from Silicon Valley’s tech corridors. The town has strict zoning to maintain its low-density, residential character, and many properties feature breathtaking views of the Santa Cruz Mountains. While it’s one of the most expensive areas in Santa Clara County, you can enjoy a unique mix of privacy, open space, and proximity to Stanford University and the business centers of Palo Alto and San Jose.

5. Monte Sereno

Monte Sereno is a small, exclusive town known for its large properties and quiet streets, offering a more private lifestyle while being minutes from downtown Los Gatos and the business centers of San Jose. With a population under 4,000, the town has a close-knit feel, and its proximity to top schools like Los Gatos High makes it especially attractive to families. Monte Sereno has no commercial zoning, meaning residents rely on nearby towns for amenities, further emphasizing its reputation as a quiet, small town.  

6. Saratoga

Saratoga combines natural beauty with upscale living and is known for its wineries, high-ranking schools, and cultural venues like the Mountain Winery and Montalvo Arts Center. The town has a rich history and offers easy access to hiking trails in the Sanborn County Park and Big Basin Redwoods. This elite suburb is known for its sense of community, top schools, and proximity to tech jobs, making it one of the best suburbs for a luxurious lifestyle in the South Bay.

Where in the Bay Area is it Cheapest to Live?

There's nothing like California living, but also nothing like the price tag for that. The South Bay Area is infamous for its high cost of living, but there are still a few (somewhat) affordable towns in Northern California and the South Bay region that offer more budget-friendly options. These cities are great for more affordable housing without sacrificing proximity to job opportunities and networking in Silicon Valley.

1. Campbell

Campbell stands out as a more affordable option in Silicon Valley, and it's perfect for people growing their careers and their families who want a balance between city life and suburban amenities. Its vibrant downtown is packed with restaurants, coffee shops, and a lively farmers’ market, making it a social hub in the area. Campbell also offers convenient access to the tech centers of San Jose and Santa Clara, as well as recreational spots like the Los Gatos Creek Trail. It’s a great option if you want to live life in a thriving community without the higher price tag of neighboring cities.

2. Milpitas

Located just north of San Jose, Milpitas offers more affordable housing than its neighbors while providing easy access to the larger Silicon Valley area. It’s a popular choice for families and tech workers who want to avoid the sky-high prices of cities like Palo Alto. Although still somewhat expensive, Milpitas is one of the cheapest places to live in the South Bay Area while still providing good schools, plenty of parks, and legendary weather. 

3. Morgan Hill

Morgan Hill is a small town located on the southern edge of Santa Clara County and is one of the more affordable towns in Northern California compared to other South Bay cities. The town's laid-back atmosphere with wineries, hiking trails, and a charming downtown area makes it a great place to visit and live. If you're willing to commute or have a hybrid schedule, Morgan Hill gives you affordable housing options while still being within reach of Silicon Valley tech jobs. Our gallery of work shows you what's possible in any South Bay Area city - as long as you work with the right builder.

What is Considered the South Bay Area?

The South Bay Area refers to the southern portion of the larger San Francisco Bay Area. It includes several cities in Santa Clara County that are part of Silicon Valley, a global tech hub known for housing some of the largest tech companies in the world. While many people consider this part of California to be one of the most well-known regions in the Golden State, the defined parameters can get a little hazy. 

1. Is San Jose the South Bay Area?

Yes, San Jose, the largest city in Northern California, is part of the South Bay Area. San Jose is the largest city in California's South Bay and the third-largest city in the entire state. Known for its diverse neighborhoods, booming tech industry, and family-friendly atmosphere, San Jose offers a wide range of housing options, from luxury apartments downtown to suburban homes in areas like Willow Glen. The best neighborhoods in San Jose for families include places like Almaden Valley, with its excellent schools and scenic views, and Willow Glen, which is also Google Maps "famous" for its tree-lined streets and charming downtown area. Some of the best San Jose neighborhoods also cater to young professionals and tech workers, including areas like Santana Row, which offers trendy restaurants, shopping, and nightlife. If you're looking for a place with a focus on community and education, the best neighborhoods in San Jose for families include Evergreen and Blossom Valley.

2. Let's Talk Santa Clara

Another major name that you might recognize is Santa Clara. Located just north of San Jose, Santa Clara is another key city in the South Bay. It’s home to Levi’s Stadium, where the San Francisco 49ers play, as well as several major tech companies. Santa Clara has a growing Koreatown district with a mix of Korean restaurants, markets, and cultural events. The city’s central location makes it convenient for commuters and families alike. We won't give an opinion on football, but the 49ers sport a name that hearkens back to California's gold rush days. It's one of the elements that makes Santa Clara so quintessentially Californian. 

Is South Bay a Good Place to Live?

One of the reasons home remodel costs in the South Bay Area are rather expensive is that it's an excellent place to live for those working in Silicon Valley, especially if you work in the tech industry, value high-performing schools, and love nothing more than the California lifestyle. South Bay Area California cities like San Jose, Cupertino, and Palo Alto are often ranked among the best places to live in Northern California due to a strong job market, good schools, and vibrant communities filled with growing families and tech professionals. Keep in mind this region's popularity when looking at a potential remodeling timeline and planning for the future. 

What is the South Bay Area Known For?

If you're scrolling this on an iPhone, you might have guessed. The South Bay Area is primarily known as the center of Silicon Valley, the global hub for technology and innovation. Cities in the South Bay Bay Area are home to some of the world's largest and most influential tech companies, including Apple, Google, and Facebook. This region had a thriving agriculture community long before it was a tech hub. Today, it's known for its excellent schools, diverse population, and access to outdoor recreation, from hiking trails in the nearby mountains to beaches on the Pacific coast.

Your South Bay Area Builder

No matter if you're drawn by job opportunities, excellent schools, or a lifestyle that blends urban amenities with outdoor recreation, the South Bay Bay Area remains one of the best places to live in the state. We're proud to serve this region and the people that make it a thriving center of thought and industry. Our process allows you to be informed every step of the way, and our goal is to partner with you and build a relationship with you. South Bay Area cities offer some of the best places to live in Northern California, whether you're seeking a family-friendly suburb, a tech-centric urban area, or a more affordable town with access to Silicon Valley. The South Bay has something for everyone, from the best neighborhoods in San Jose to the most affordable towns in Northern California, like Milpitas and Morgan Hill. Our list of questions to ask your remodeler will help you choose the right team to make your piece of this area truly home.