If you're looking at the Bay Area housing market in 2026 and thinking "where can I actually afford a house," Gilroy is one of the few answers left inside Santa Clara County. Median home prices here run about $900,000. That's still a lot of money. But compared to San Jose ($1.25M), Morgan Hill ($1.07M), or anything on the Peninsula, it's a different conversation.
We talk to first-time buyers all the time through our newsletter. Here's where they're looking, and why.
Glen Loma Ranch
This is the neighborhood that draws the most new families. It's a master-planned community on the west side of Gilroy, off Santa Teresa Boulevard. Construction started around 2015 and new phases are still being built.
The appeal: newer homes (many built after 2018), parks built into the plan, and wide sidewalks that connect everything. Homes range from 1,600 to 2,800 square feet. Prices typically run $800K to $1.1M depending on size and lot.
The HOA is structured, usually around $150 to $200/month, but it covers common area landscaping, community spaces, and the neighborhood feel that comes from planned design.
Schools feeding from Glen Loma include Rod Kelley Elementary and Solorsano Middle School. Christopher High School serves this area.
The trade-off: Glen Loma feels like a development. It's clean and new, but it doesn't have the mature trees or the character of older Gilroy neighborhoods. If you're after charm, look elsewhere. If you're after turnkey and modern, this is it.
Eagle Ridge
North of Leavesley Road, east of 101. Another newer community, though slightly older than Glen Loma. Homes from the late 2000s and 2010s. Good access to 101 for commuters heading north.
Prices here tend to run $850K to $1.0M. The homes are slightly smaller than Glen Loma's newer builds, but the location premium for highway access keeps them competitive.
Eagle Ridge feels more suburban than master-planned. There are sidewalks and parks, but the layout is more traditional grid than Glen Loma's looping streets.
South Gilroy / Thomas Road area
South of town, closer to the Gilroy Premium Outlets and the 101/152 interchange. This is a mix of older homes (1970s through 1990s) and some smaller newer developments.
Prices here dip. You can find three-bedroom homes in the $750K to $850K range, especially east of Monterey Road. These are smaller lots and older finishes, but for first-time buyers who need to get in under $900K, this area works.
The catch: outlet traffic on weekends. If you live near Leavesley and 101, Saturday and Sunday mornings bring a surge of shoppers heading to the outlets. You learn the back routes quickly.
Schools here feed into Gilroy High School, which has a strong athletics program and is the home of GECA, the Early College Academy.
Old Gilroy / Downtown
Along and around Monterey Street, north of Sixth Street. This is the historic core. Craftsman homes from the early 1900s. Victorian cottages. Some mid-century ranches.
The charm factor is high. The price varies wildly. A fixer-upper Craftsman on a 6,000-square-foot lot might list at $650K. A fully renovated Victorian could hit $950K. The range is wide because the condition of these older homes varies enormously.
First-time buyers who are handy and patient can find genuine value here. The city's downtown investment is pushing values up, but slowly enough that there's still room.
Walking distance to the restaurants opening on Monterey Street. Close to the train station. The feel is more "real town" than any other Gilroy neighborhood.
East Gilroy / Santa Teresa corridor
East of Monterey Road, heading toward the hills. This is where Gilroy feels most like a small agricultural town. Larger lots. Some homes with actual acreage. Older ranchettes and 1960s-1970s builds.
Prices vary: $800K for a three-bedroom on a quarter-acre up to $1.2M for larger properties with outbuildings. Not typical first-time buyer territory on the high end, but the smaller homes on the east side can work.
The appeal: quiet, space, views. The trade-off: further from 101, further from commercial services.
What first-time buyers should know
Property tax in Gilroy runs about 1.1% to 1.2% of assessed value. On a $900K home, that's roughly $10,000 to $10,800 a year.
Gilroy has a Mello-Roos special tax in some newer communities, including parts of Glen Loma Ranch. Mello-Roos can add $3,000 to $5,000 annually on top of regular property taxes. Ask about it before you make an offer. Some buyers get surprised at closing.
PG&E rates are the same as the rest of Santa Clara County: high. Budget for summer cooling costs. A house without solar in Gilroy will run $250 to $400/month in electricity during July and August.
The FHA loan limit for Santa Clara County in 2026 covers homes up to about $1.15 million. That means most Gilroy homes qualify for FHA financing with 3.5% down. VA loans have no limit. Conventional conforming limits cover most of the market here too.
Our take
Gilroy is where first-time buyers in the Bay Area can still get a real house on a real lot with a real yard. It's not "cheap." Nothing in the Bay Area is. But it's possible here in a way that stopped being possible in Campbell or Willow Glen five years ago.
If we were buying our first home today and working hybrid, we'd start in Old Gilroy or Glen Loma Ranch, depending on whether we wanted character or convenience.
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Sources: Salary.com Gilroy cost of living (2026), BestPlaces.net Gilroy housing data, City of Gilroy, Gilroy Unified School District, Santa Clara County Assessor property tax information