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San José study: townhomes and stacked-sale projects generally viable; podiums and towers face steep cost barriers
Summary
City staff and consultants told the City Council that market‑rate townhomes and stacked‑flat products are largely feasible today while podiums, wraps and high‑rise towers often return negative land residuals under current rents and costs; targeted fee waivers or rent growth of 5–15% could shift feasibility for some mid‑rise projects.
San José — A city study presented to the San José City Council on Dec. 8 found that several common market‑rate housing types can move forward under current conditions, but higher‑density products face large financial hurdles. Eric Sullivan, San José’s director of housing, introduced analysis by Economic & Planning Systems (EPS) showing that townhomes and stacked‑sale units generally produce positive residual land values, while podium, wrap and tower products often do not.
Jason Moody, managing director at Economic & Planning Systems, said the team modeled five building types on two‑acre example sites across four growth areas and ran sensitivity tests for rents and costs. "Townhomes and…
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