For 23 years, the Fish Market restaurant sat at 1007 Blossom Hill Road, a fixture across from Westfield Oakridge that closed during the pandemic and never reopened. The building was slated for demolition in 2022. What's rising in its place is a seven-story, 271-unit affordable housing complex, financed with a $108 million tax-exempt bond secured by developer Jemcor Development Partners and Pacific Housing in May 2023.
Half a mile down the same road, at the Blossom Hill VTA station, a parking lot is turning into 328 apartments across two buildings. A few blocks further, a shopping center is being replaced with 172 townhomes and additional dwelling units. Three sites, one road, roughly 771 new residences moving through construction or final permitting at the same time.
Meanwhile, on the residential streets that branch off Blossom Hill Road into Blossom Valley proper, nothing is being demolished. No parking lots are turning into six-story buildings. The single-family blocks look exactly like they did five years ago.
That gap between what's happening on the corridor and what's happening one block over is the actual story here. It's not one building boom with one effect on home values. It's two separate stories running in parallel, and which one applies to you depends entirely on what kind of property you own.
What's Under Construction, Specifically
Here's the corridor as it stands in September 2026:
| Project | Address | Units | Status |
|---|---|---|---|
| Republic at Blossom Hill (Blossom Hill Station) | 605 Blossom Hill Rd | 328 (239 market-rate, 89 affordable) | Approved 2022; design modifications to the affordable building reviewed April 2026 |
| Blossom River affordable housing | 1007 Blossom Hill Rd | 271, 100% affordable | Financing secured May 2023; construction underway |
| Townhome conversion | 865 Blossom Hill Rd | 172 (137 townhomes, 35 ADUs) | In entitlement, using SB 330 streamlining |
The 605 Blossom Hill Road project alone has been in process since a 2021 rendering release, cleared City Council approval on August 9, 2022, and was still going back to San Jose's Planning Director for height and parking adjustments in April 2026. The building height on the affordable parcel came down from 70 feet to roughly 63 feet, parking dropped from 51 spaces to 44, and shared amenity space shrank from 14,000 to 11,500 square feet. Nearly four years from council approval to a still-open design review is the actual pace of this kind of project, not the pace implied by a rendering showing up in a news feed.
Why These Parcels and Not the Ones Next to Them
The mechanism that unlocked all three projects is not a rezoning of Blossom Valley. It's a set of state tools, primarily the Housing Accountability Act's builder's remedy provision and the Housing Crisis Act of 2019 (Senate Bill 330), that restrict a city's ability to deny or shrink housing developments that include affordable units, especially on parcels the city has already designated for this kind of growth.
San Jose channels that growth into specific zones it calls Urban Villages. The 605 Blossom Hill Road site sits inside the Blossom Hill/Calahan Urban Village Plan area. The 1007 Blossom Hill Road site is inside the Oakridge Mall and Vicinity, or Edenvale, Urban Village, a designation the city applied because the parcel already sits at what the property's own marketing materials called the intersection of two VTA light rail lines and three major roads. The 865 Blossom Hill Road site is a commercial shopping center parcel, which made it eligible for SB 330's streamlining even before the city finished any Urban Village process.
None of that reaches into the R-1 zoned residential streets around them. The tools that removed a parking lot and a shuttered fish restaurant from the table don't have a mechanism for reaching a fee-simple single-family lot on a quiet block, because that lot was never inside the commercial or transit-adjacent boundary the state law and the city's own General Plan use to define where this housing goes.
Then-Councilmember Matt Mahan, whose district included the Blossom Hill Station site, put the pace of the process this way when the project cleared council in 2022:
"My only frustration has been how slow our process has been on the city side. We have to invest in our Planning Department to reduce vacancies and streamline our review process."
That's a comment about permitting speed, not about whether the project would happen. The state tools made approval close to mandatory once the affordability threshold was met. What they didn't do was make it fast, and they didn't extend to the surrounding neighborhood.
If You Own a Single-Family Home Here
For homeowners on the R-1 streets in Blossom Valley, Almaden, and the other single-family pockets near this corridor, the practical exposure to these three projects is close to zero on the zoning side. The projects landing nearby are not going to be followed by similar projects landing on their own street, because their street was never inside the boundary that made these approvals possible.
South San Jose single-family homes were trading at a median sale price of roughly $1.1 million over the three months ending June 2026, with typical homes going under contract in about 26 days. That's the general shape of demand in the area heading into fall 2026: steady, not frantic, but far from soft. New residential construction has been essentially absent from the single-family stock itself for years, and the new supply arriving on Blossom Hill Road doesn't change that scarcity. If anything, the retail space built into the ground floors of these projects, roughly 22,500 square feet at the Blossom Hill Station site alone, adds walkable amenities to a corridor that single-family owners nearby will use without living inside the density that comes with it.
If You Own a Condo or Townhome Here
The story changes for owners of attached housing in the immediate area. Condos in South San Jose have been trading at a median price closer to $662,500 in 2026, roughly 40 percent below the single-family figure. That gap exists partly because condos and townhomes are the product type these new projects are adding directly to.
The 865 Blossom Hill Road development is 137 new townhomes landing in the same submarket where existing townhomes already compete on price and square footage. The market-rate units at 605 Blossom Hill Road, 239 of them, are rental apartments rather than for-sale product, but they still pull from the same pool of renters and entry-level buyers who might otherwise be shopping existing condos nearby. An owner of an attached unit within walking distance of these sites is going to be selling into a market where hundreds of comparable or adjacent units are becoming available within the same one to two year window, not a market where supply stayed flat.
That doesn't mean values collapse. It means the pricing conversation for that specific product type, in that specific stretch of the corridor, needs to account for new inventory that a single-family seller three streets over simply doesn't have to think about.
The Part the Headlines Skip
None of this happened quickly, and none of it is finishing quickly either. The Blossom Hill Station project took nearly four years to go from council approval to a still-active design review. The 1007 Blossom Hill Road project moved from a 2021 rendering to secured construction financing in 2023, and construction has been underway since without a confirmed public completion date. The 865 Blossom Hill Road townhomes were still in entitlement as of this year.
For anyone comparing South San Jose neighborhoods right now, the honest read is that this corridor is mid-transition, not finished. If you're evaluating a single-family purchase nearby, the retail and transit access these projects bring will likely be additive by the time they're fully leased and stabilized, probably 2027 or later based on the pace so far. If you're evaluating a condo or townhome purchase or sale in the immediate vicinity, the new supply is a real variable in your pricing timeline, and it's worth having that conversation before you list or make an offer.
A Few Questions Worth Asking Directly
Does builder's remedy apply to my single-family lot? Only if your parcel sits inside a designated commercial or Urban Village boundary and is proposed for a qualifying affordable housing project. Standard R-1 residential lots outside those boundaries aren't eligible.
Will the new apartments increase traffic on my street? That depends on proximity and the specific street network. As a condition of its approval, Republic Urban committed $3.1 million toward street improvements and a trail connection to Martial Cottle Park, which suggests the city anticipated measurable traffic and access impacts from the project itself.
When will these projects actually be finished? The 1007 Blossom Hill Road building secured its construction financing in 2023 and has been under construction since, with no updated public completion date found as of this writing. The Blossom Hill Station project has no confirmed completion date either, given the design changes still being reviewed in April 2026. The 865 Blossom Hill Road townhomes were still in entitlement.
If you're trying to figure out how any of this plays into the value of a specific address, whether you're on the single-family side of Blossom Hill Road or holding a townhome that's about to get new neighbors, that's exactly the kind of question worth working through with someone who tracks this corridor closely. The Tenczar Team can walk through what it means for your property specifically. Get your home's value and start that conversation today.
