Gilroy’s real estate market is far from static. The median home value sits around $1,054,436, down roughly 4% year over year. Homes are going pending in about 29 days, which suggests things are cooling just a bit from the crazier pace of past years.
Gilroy’s housing market is evolving quickly. The median home value is currently $1,054,436, down about 4% over the past year. Homes go pending in roughly 29 days, a clear sign the buying frenzy has cooled — but not disappeared. This shift opens a rare window for buyers who were priced out just a couple of years ago.
1. Affordability in Perspective
Even though “median over $1 million” sounds intimidating, there are still ways to break into the Gilroy market if you’re strategic. Smaller homes, older properties, and fixer-uppers offer a foothold into neighborhoods that were once unattainable for first-time buyers.
“I never thought we’d find anything under $900,000,” says Anna M., a local buyer who recently closed on a 3-bedroom home near Wren Avenue. “It wasn’t perfect, but it checked the right boxes and didn’t have us competing with ten other offers.”
Many homes built between the 1960s and 1980s can still be found below the city’s median — especially those needing cosmetic updates. These properties may require some elbow grease, but they also allow buyers to gain equity over time instead of paying rising rents.
If you’re flexible about location and willing to handle some upgrades, Gilroy offers a mix of suburban calm and long-term upside.
2. What the Listings Show
At first glance, the Gilroy market might look like it’s only for millionaires, but current data tells a more nuanced story. Active listings show a range from $850K starter homes to $2.5M luxury estates, meaning there’s room for different types of buyers.
According to MLSListings, inventory has increased in recent months, giving buyers more choices and leverage during negotiations. Homes are staying on the market longer, and sellers are more open to repairs or credits — something unheard of in 2021’s hyper-competitive market.
3. Life in Gilroy
Gilroy is best known for its community warmth and its garlic-infused history, but it’s also quietly growing into a desirable hub for Silicon Valley commuters. Residents enjoy tree-lined neighborhoods, vineyards, and plenty of open space — all while being about a 40-minute drive from major tech centers like San Jose.
Parks such as Christmas Hill Park and Las Animas Veterans Park offer weekend escapes without leaving the city. Add in expanding retail and dining near the Gilroy Premium Outlets, and it’s easy to see why buyers are choosing Gilroy as a long-term home base rather than a temporary pit stop.
4. What Kind of Investments Make Sense in Gilroy
When people think “investment,” they often picture flipping high-end homes — but in Gilroy, there are multiple ways to invest smartly:
- Single-Family Homes: Ideal for long-term appreciation. These homes tend to hold value and are easier to sell.
- Multi-Family Properties or Duplexes: Great for owner-occupiers looking to live in one unit and rent out the other. This reduces your mortgage burden while building wealth.
- Land or Development Lots: As Gilroy grows, undeveloped parcels or edge-of-town lots could become valuable for future construction.
- Fixer-Uppers: Lower upfront cost, higher equity potential. Renovating older properties remains one of the most efficient paths to profit in this market.
These investments work because Gilroy is expanding — new housing developments are rising along Hecker Pass Highway, and the city continues to approve mixed-use projects aimed at attracting families and professionals.
5. The Bottom Line
Gilroy isn’t cheap — but it’s still one of the last Silicon Valley–adjacent cities where you can own a home without crossing into ultra-luxury territory. Prices have softened slightly, giving buyers more breathing room, and the area’s long-term outlook remains strong thanks to steady job growth and proximity to major economic centers.
If you’ve been waiting for a more balanced market, this might be your time to act. The key is preparation: get pre-approved, know your budget, and keep an eye on listings that have been sitting for a few weeks — that’s where deals are being made right now.
