In a pivotal San Jose City Council study session on September 18, 2025, the urgent need for housing development was underscored, alongside the critical balance required to support small businesses. Council members expressed concerns about the impact of urban redevelopment on local enterprises, particularly in areas like Alum Rock, where many businesses are owned by immigrant families. The discussion highlighted the tension between meeting housing goals and preserving the economic fabric of the community.

Council member remarks emphasized the importance of considering small business displacement as a significant factor in urban planning. "For every commercial space that we eliminate, that is an American dream that's being shuttered," one member noted, stressing the need for the city to weigh the consequences of its housing policies on local entrepreneurs.

The conversation also touched on the concept of "missing middle" housing, which aims to diversify the types of available housing beyond single-family homes. Commissioner Cantrell pointed out that equity and diversity are essential for the city's future, advocating for more flexible policies that would allow smaller developers to contribute to housing solutions without being bogged down by lengthy entitlement processes.

As the city prepares for a four-year review of its general plan, officials acknowledged the challenge of meeting state-mandated housing targets while also addressing the needs of existing residents and businesses. The planning department is tasked with finding innovative solutions to integrate housing development with community amenities, such as childcare and health services, to create a more holistic approach to urban growth.

The session concluded with a commitment to explore creative strategies for land use that could accommodate both housing and small business needs, recognizing that the future of San Jose depends on a balanced approach to development. As the city navigates these complex issues, the outcomes of this review could significantly shape the landscape of San Jose for years to come.