Is Gilroy expensive to live?
If you’re asking this question, you’re likely trying to make sense of the Bay Area’s high cost of living and wondering where homeownership still feels realistic.
My name is DeVonna Meyer. I’ve been a South County resident for over 43 years and a full-time Realtor® since 2006, helping buyers and sellers throughout Gilroy, Morgan Hill, San Martin, and San Jose navigate this exact decision.
Here is the honest answer:
Compared to most of the Bay Area, Gilroy is one of the more affordable places to live.
However, “affordable” is relative. It is important to understand where the savings come from, what the trade-offs are, and who Gilroy is best suited for.
The Real Cost of Living in Gilroy, CA
1. Housing Costs: The Biggest Difference
Housing is where Gilroy stands apart.
- Home prices: Gilroy home prices are typically 25–35% lower than San Jose, depending on market conditions. Many buyers can purchase a single-family home with a yard here for the price of a condo or townhome farther north.
- More for your money: Larger lots, more square footage, and space for home offices or growing families are common.
- Renting: Rent prices in Gilroy are meaningfully lower than most of Santa Clara County, making it a practical option for renters saving toward homeownership.
For many first-time buyers, teachers, nurses, and local professionals, Gilroy represents a rare combination of Bay Area access with attainable housing.
2. Everyday Expenses: What Stays the Same and What Changes
Groceries and daily goods
Prices are generally in line with the rest of the region. Gilroy’s agricultural roots and farmers’ markets can help offset food costs with fresh, local options.
Utilities
Electricity, gas, water, and waste services are comparable to nearby cities. Newer homes may benefit from improved energy efficiency, lowering long-term utility costs.
Transportation
This is where budgets vary most:
- Local driving costs are modest due to shorter distances.
- Commuters heading north should factor in fuel, vehicle wear, and possible express lane tolls.
- Caltrain from Gilroy can be a cost-effective alternative for some commuters.
Gilroy vs. San Jose: Cost of Living Compared
This is the most common comparison I review with clients.
Housing
Gilroy offers significantly more home and land for the same investment.
Taxes
Both cities are in Santa Clara County, with the same base property tax rate of approximately 1 percent of assessed value, plus local assessments.
Lifestyle costs
Dining, services, and entertainment are often slightly less expensive in Gilroy due to its smaller, less metropolitan footprint.
The commute trade-off
Gilroy’s primary added cost is time. Buyers commuting into Silicon Valley must weigh drive or train time against the thousands saved each month on housing.
For many families, the math still works strongly in Gilroy’s favor.
Pros and Cons of Gilroy’s Affordability
Why Gilroy Feels Affordable
- Homeownership remains achievable in a region where many cities are out of reach
- Lower housing stress frees income for savings and quality of life
- More space for families, remote work, and long-term living
- A grounded, authentic community that values practicality over polish
The Trade-Offs to Consider
- Longer commutes for Silicon Valley jobs
- Fewer luxury retail and entertainment options
- Competitive buyer demand due to Gilroy’s relative affordability
This is where preparation and negotiation matter. My background as a Certified Negotiation Expert (CNE) helps buyers compete effectively without overpaying.
Affordable Neighborhoods in Gilroy: Where Value Stretches Further
While all of Gilroy offers relative value, some areas stand out:
Northeast and Central Gilroy
Established neighborhoods with homes from the 1960s through the 1980s often feature larger lots and attractive pricing.
Downtown-adjacent areas
Smaller, character-rich homes near the historic core can be excellent entry points for first-time buyers.
Newer developments
Higher purchase prices, but modern layouts and energy efficiency can reduce long-term ownership costs.
Frequently Asked Questions About Living in Gilroy
Is Gilroy more affordable than Morgan Hill?
Yes. Gilroy is typically 10–20% more affordable than Morgan Hill, which often carries higher prices tied to its downtown branding and newer development patterns.
Can you live in Gilroy on a single income?
While still challenging, it is far more possible here than in most Bay Area cities. Condos, townhomes, and smaller single-family homes make ownership achievable for many single professionals.
What are property taxes like in Gilroy?
The base rate is about 1 percent of assessed value, plus local bonds or Mello-Roos where applicable. I always provide a property-specific tax estimate before clients commit.
Are there hidden costs?
Potential Mello-Roos in newer communities and maintenance on older homes are the most common. Thorough inspections and disclosure reviews help prevent surprises.
The Bottom Line: Is Gilroy Affordable for You?
Gilroy is not the cheapest place in California, but it remains one of the most practical answers the Bay Area still offers.
Gilroy works especially well if you:
- Want space and long-term equity
- Work remotely or hybrid
- Are buying your first home
- Value community and livability over city polish
If you are ready to see what your budget can realistically buy in Gilroy, I am here to provide clear, honest, data-driven guidance.
Local Realtor® Contact Information
DeVonna Meyer Realtor
eXp Realty
16433 Monterey Rd Suite 120
Morgan Hill, CA 95037
Phone: 408-981-4079
Website: https://devonnameyer.com
