San Jose Affordable Housing Tower Secures Financing
The 220-unit project will offer affordable rental housing for downtown San Jose workers by 2029.
Updated on Oct. 15, 2026 in Commercial
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Developers have secured financing for the 15-story Gateway Tower in downtown San Jose, a project expected to cost $197.8 million. The residential building will feature 220 apartment units, 218 of which are designated as affordable housing for the local workforce.
Why it matters
The project addresses a critical need for workforce housing in downtown San Jose by providing units for residents earning between 30% and 70% of the Santa Clara County median income. With construction starting in October 2026, the development aims to increase housing availability for downtown employees.
The project carries a total expected development cost of $197.8 million, averaging approximately $899,100 per unit. Units are restricted to households earning between 30% and 70% of the area median income, which is currently set at $143,850 for one person and $205,500 for a family of four.
The players
The Core Cos.
A developer involved in residential real estate projects that impact local housing supply.
JPMorgan Chase
A global financial institution that provides development loans for real estate projects.
San Jose Jazz Co.
A local non-profit arts organization slated to occupy commercial space in the new development.
The details
The project is a joint venture between The Core Cos. and the Affordable Housing CDC, financed by a mix of private and public entities including JPMorgan Chase, the City of San Jose, Santa Clara County, and the State of California. Located near South Market, West William, and South First streets, the tower will also house 3,300 square feet of commercial space expected to be occupied by the San Jose Jazz Co. The high-rise is scheduled for a potential completion date in 2029.
Timeline
October 2026: Construction is scheduled to begin.
Oct. 14, 2026: Official financing documentation was filed.
Money Landscape
This development follows recent urban growth trends in downtown San Jose, such as the 2024 opening of The Fay residential high-rise. The project relies on regional area median income benchmarks to define affordability in a market where housing costs remain high relative to historical averages.
Downtown workers meeting the income eligibility requirements may eventually be able to apply for these rent-restricted units. Prospective renters should monitor local housing authority announcements to learn when leasing processes will begin as the 2029 completion date approaches.
The takeaway
The addition of 218 affordable units represents a significant shift for the downtown San Jose rental market for lower-to-middle income earners. Prospective renters should keep documentation of household income levels ready, as these typically determine eligibility for similar workforce housing programs.
Further reading
For more on large-scale urban development projects, visit the San Jose Commercial section.
Source note: This article includes information reported by San Jose Mercury News.
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