Homes for Sale in Gilroy: A Local's Guide to Buying in 2026

Gilroy is the part of Santa Clara County where people can still buy a house without selling a kidney. That is not a joke. When the median home price in San Jose is $1.3 million and Cupertino is somewhere north of $3 million, Gilroy at $1.1 million starts to look like the most reasonable option in the county.

We bought here. We cover this market in our newsletter every week. Here is what the numbers actually look like right now, plus the neighborhood-level detail you will not find on Zillow.

The price dip is real

Gilroy home prices are down about 10% year-over-year as of early 2026. The median sale price dropped from roughly $1.22M to $1.1M. Price per square foot fell 8.2% to $514.

What is driving the dip? A few things happening at once. Inventory is up compared to 2025. Interest rates have made monthly payments painful at these price points. And some buyers who were priced out of other South Bay cities have shifted their search to more affordable markets outside the county entirely.

For buyers, this is the most favorable Gilroy market in two years. Homes are still selling, but you have more choices and less competition than you did in 2024.

Where to buy: neighborhood by neighborhood

Glen Loma Ranch is the newest large-scale development in Gilroy, on the northeast side of town. KB Home is actively building here, with duet homes and single-family homes in the McCutchin Creek and Palomino neighborhoods. If you want new construction with modern floor plans, parks, and trails built into the community, this is the primary option right now. Prices for new builds start in the high $900Ks and climb past $1.2M depending on the lot and floor plan.

Eagle Ridge is the established luxury neighborhood, a gated community near the Eagle Ridge Golf Club. Homes here are larger, lots are bigger, and prices reflect it. Expect $1.3M and up for resales. The community has a pool, clubhouse, and views of the surrounding hills.

North Gilroy is the most convenient area for commuters. You are closer to the 101 on-ramps and closer to Morgan Hill. The neighborhoods here are a mix of 1990s and 2000s construction, well-maintained, and tend to sell faster than the city average because of the location.

Downtown Gilroy is where the older homes are. Some are charming Craftsman-style bungalows from the 1920s and 1930s. Others need work. The city has been investing in downtown revitalization, and the walkability to Monterey Road restaurants and shops is a real draw. Prices are lower here, often under $900K, but condition varies widely.

South Gilroy is where things get more agricultural. Larger lots, some with outbuildings, and proximity to the Gilroy Garlic Festival grounds and Hecker Pass. This area appeals to buyers who want land, not just a house.

Condos and townhomes: the entry point

If single-family homes at $1.1M are out of reach, Gilroy has a condo and townhome market that most people overlook. The median for attached homes is around $585,000, which is roughly half the single-family median.

That $585K price point puts a 2- to 3-bedroom townhome within reach for first-time buyers, especially with current loan programs. The price per square foot for attached homes ($484) is nearly identical to single-family ($514), so you are not paying a huge premium for less space. You are just buying less of it.

Most of the attached inventory is in the central and north parts of town, close to shopping and 101 access.

What to watch out for

Flood zones. Parts of Gilroy, particularly near Uvas Creek and the Pajaro River, fall in FEMA flood zones. Flood insurance is mandatory if your property is in a designated zone, and it adds to your monthly costs. Check the FEMA flood map before you write an offer.

Agricultural odors. Gilroy is surrounded by agriculture, and the garlic processing operations south of town produce a smell that is more noticeable on hot summer days. Most residents say they get used to it. Some never do. Visit on a warm afternoon in July before you commit.

Train noise. The Union Pacific rail line runs through central Gilroy. Homes within a few blocks of the tracks will hear trains, particularly at night. The Caltrain commuter service also uses this corridor. If noise sensitivity is a concern, check proximity to the tracks when evaluating specific properties.

Commute reality. Gilroy to central San Jose is 35 to 50 minutes on a good day. To Mountain View or Palo Alto, add another 20. Test the commute at the time you would actually be driving it, not on a Saturday morning.

New developments to watch

Beyond Glen Loma Ranch and Heritage on 6th, the city has several projects in the planning pipeline. The Town Center Flex neighborhood has a tentative map approved for 46 lots. KB Home continues to pull permits for additional phases in Glen Loma.

The city's planning division maintains a current project log if you want to see what is coming. For a city of 60,000, there is a meaningful amount of new housing in various stages of approval.

Our honest take

Gilroy is the best value in Santa Clara County for buyers who are willing to accept the commute trade-off. The 10% price dip has opened a window that was not there a year ago. New construction options exist (which is rare in this part of the Bay Area). And the city is actively investing in infrastructure and downtown improvements that should support property values long-term.

If you work remotely or have a flexible schedule, Gilroy is hard to beat. If you are commuting to north San Jose five days a week, make sure you are honest with yourself about what that drive will feel like in month six.