Property Values in Santa Clara County Climb to Record High

Santa Clara County’s taxable property base climbed to a record high for the fiscal year 2026-27.

Taxable property values in the Silicon Valley county reached a total of $760.1 billion, with the assessment roll increased by $34.4 billion, or more than 4.7 percentage points year over year, the Silicon Valley Business Journal reported.

The assessment roll, which determines property tax revenue for local governments, schools and public agencies, was boosted primarily by ownership changes, which added $16.9 billion in assessed value with new benchmarks set under Proposition 13. Inflation adjustments contributed another $14 billion, while new construction accounted for $4.9 billion.

Residential sales made up 82 percent of the value generated through ownership transfers, speaking to the housing market’s outsized role in supporting the county’s tax base despite elevated mortgage rates that have cooled buyer demand.

Residential transactions and inflation adjustments did most of the heavy lifting as Silicon Valley office buildings continued to lag for much of the fiscal year. Office vacancy hovered near 20 percent for a third straight year as hybrid work continued to suppress demand across Silicon Valley. More office buildings are trading below their assessed values, while distressed sales and foreclosures have become increasingly common, putting additional pressure on future tax collections.

The county currently has roughly $153.6 billion in assessed value under appeal, with commercial properties accounting for 98 percent of those challenges. Santa Clara County assessor Neysa Fligor warned that another wave of commercial assessment appeals could force downward revisions to the tax roll in the coming year. In total, 24,727 properties remain in decline-in-value status under Proposition 8, with commercial assets responsible for billions of dollars in lost assessed value.

Construction activity also remained below historical expectations, though it is proving to be a bright spot in the market. Despite construction activity contributing $4.9 billion to the roll, several high-profile development projects remain delayed, including Google’s Downtown West project in San Jose, The Rise redevelopment at Cupertino’s former Vallco Mall site and Related California’s mixed-use project in Santa Clara.

— Chris Malone Méndez