Introduction
Quick answer: Santa Clara County's total assessed property value reached a record $760.1 billion for fiscal year 2026-27, up $34.4 billion (4.7%) from the prior year, according to the County Assessor's annual report. Home sales drove most of the growth, and Sunnyvale led major cities with growth above 7%. At the same time, nearly three times as many properties, mostly condos and townhomes, had their assessed values temporarily lowered due to market declines.
Santa Clara County just set another property value record, and the details say a lot about where Silicon Valley real estate is heading.
The headline is strong growth. But beneath it is a split market: single-family homes continue to gain value, while parts of the condo and townhome market have softened.
In this article, we'll break down:
- What the record $760.1 billion assessment roll means
- What's driving the growth
- Why more condos and townhomes are losing value
- What this means for buyers and homeowners
Santa Clara County's Assessment Roll Grew 4.7%
The assessment roll is the total taxable value of all property in the county. It determines how much property tax revenue flows to schools, cities and local services.
For fiscal year 2026-27, the roll reached $760.1 billion, an increase of $34.4 billion. Growth accelerated to 4.7%, up from just over 4% in 2025.
Where the $34.4 billion increase came from:
- ~$16.9 billion from changes in ownership (home and property sales)
- $13.1 billion from the annual Prop 13 inflation adjustment
- Nearly $5 billion from new construction, including multifamily housing, offices and data centers
Residential property accounted for 82% of the value change. Homes, not office towers, remain the backbone of Silicon Valley's property wealth.
Home Sales Are the Biggest Driver
Under Prop 13, a property's assessed value is reset to market value when it sells, then can rise by no more than 2% per year. That means every sale of a long-held home adds significant value to the roll.
This is why sales activity matters so much. County Assessor Neysa Fligor identified sales transactions as the biggest driver of roll growth, and warned that "the cost of money (mortgage rates) will be significant" going forward.
City highlights from the report:
- Sunnyvale: growth above 7%, among the strongest in the county
- Santa Clara: about 3.7% growth
- Strong residential sales across the county's established neighborhoods
Sunnyvale's performance makes sense. It sits at the center of Silicon Valley's tech corridor, and its single-family homes sell at roughly 109% of list price on average.
AI Is Bringing Commercial Real Estate Back
Commercial real estate is also showing signs of recovery. According to CBRE's third-quarter data cited in the report, Silicon Valley office leasing topped 4 million square feet, the highest quarterly total since 2019.
Key commercial trends:
- Office vacancy fell to 14.1%, from 15.1%
- About 86% of leasing went to Class A properties
- AI infrastructure investment is helping drive commercial activity
- Data centers contributed to new construction value
For homeowners, this matters. When companies lease more office space, they bring more employees back to the region, and those employees need housing.
More Condos and Townhomes Are Losing Value
The report also contains a warning sign. 24,727 properties were placed in Prop 8 decline status, nearly triple the prior year. Most of them were condominiums and townhomes.
Prop 8 allows the Assessor to temporarily lower a property's assessed value when its market value drops below its Prop 13 value. It typically affects owners who bought near a recent price peak.
Local agents note that some homes priced under $2 million, mainly townhomes and condos, have lost value recently. This reflects a K-shaped market:
- Single-family homes continue to appreciate
- Many condos and townhomes have been flat or down
- Recent buyers of attached homes are most affected
- Commercial properties receiving reductions also rose 36%
What This Means for Buyers and Homeowners
For homeowners, rising assessed values reflect long-term wealth building, especially for single-family owners. Under Prop 13, your tax bill still rises no more than 2% per year unless you sell or add new construction.
For condo and townhome owners who bought recently, check whether your home's market value has dropped below its assessed value. If it has, you may qualify for a temporary reduction through the Assessor's office.
For buyers, the split market creates opportunity:
- Condos and townhomes may offer more negotiating room
- Single-family homes remain competitive, especially in Sunnyvale
- Property tax is based on your purchase price, roughly 1.1–1.3% per year in most areas
- Mortgage rates near 7.4% remain the biggest affordability factor
Frequently Asked Questions
What is Santa Clara County's assessed property value in 2026?
Santa Clara County's assessment roll reached a record $760.1 billion for fiscal year 2026-27, up $34.4 billion, or 4.7%, from the prior year.
Which Santa Clara County city grew the most in 2026?
Among cities highlighted in the Assessor's report, Sunnyvale saw growth above 7%, compared to about 3.7% in Santa Clara.
Why are condos losing value in Santa Clara County?
The number of properties in Prop 8 decline status nearly tripled to 24,727, mostly condos and townhomes. Some attached homes priced under $2 million have lost value as demand concentrates on single-family homes.
What is Prop 8 decline status?
Prop 8 lets the County Assessor temporarily lower a property's assessed value when its market value falls below its Prop 13 assessed value. The value can be restored as the market recovers.
Conclusion
Santa Clara County's record $760.1 billion assessment roll confirms that Silicon Valley real estate remains one of the strongest long-term stores of wealth in the country. Home sales, AI-driven commercial activity and new construction are all contributing.
But the market is not moving evenly. Single-family homes, especially in cities like Sunnyvale, continue to gain value, while many condos and townhomes have softened. Understanding which segment you're buying into matters more than ever.
As a data-driven Bay Area real estate advisor ranked in the top 0.5% nationally with over $80M in annual production, I help clients analyze not only properties — but the long-term direction of the markets they're buying into.
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Source: San José Spotlight, "Santa Clara County report shows increased property values" (Oct. 25, 2026), citing the Santa Clara County Assessor's 2026-27 Annual Report and CBRE Q3 2026 data.