Gilroy's Housing Pipeline Is Finally Moving. Most of It Isn't for Sale.

On the northwest corner of Las Animas Avenue and Murray Avenue sits an undeveloped parcel of about 27.55 acres. It is zoned M1 Limited Industrial, and it now holds Gilroy's largest housing project. The project is called Park 315, and every one of its 530 homes is a rental unit.

For a buyer comparing South County towns, waiting for new construction in Gilroy only makes sense if the new homes will be for sale. In the city's 2026 planning logs, the projects that have building permits will be rented out. The for-sale projects are still mostly tentative maps, "coming soon" pages, and one subdivision proposed under a contested state law. For anyone hoping to own a home in Gilroy within the next year or two, that leaves the resale market, which is moving at a slower pace than most of Santa Clara County.

The June permits went to renters

Gilroy started 2026 from a low base. The Gilroy Dispatch reported that the city issued only 37 residential building permits in 2025. Its state housing target for 2023 to 2031 is 1,773 homes, and it had permitted 433 of them, which leaves 1,340 to go. The Dispatch also reported that Community Development Director Sharon Goei told the council, "So we anticipate an increase this year and next," after staff described reviewing "very large multifamily projects."

The increase came on June 22, 2026. That day the city issued building permits for two projects, and together they hold more units than Gilroy permitted in the previous two years combined:

• Park 315, 315 Las Animas Avenue. Gandolfi Investments' 530 rental units. The city's February 2026 approval sets aside 106 of them as deed-restricted for lower-income households at rents capped at 30% of 60% of the county's area median income. The approved plans include a pool, dog park, tot lots and barbecue areas.
• Monterey Family Apartments, 6630 to 6730 Monterey Road. ROEM Corp's 94-unit affordable project in the downtown gateway district. The California Housing Finance Agency approved its financing in June 2025.

So the permits are real, but they don't add homes for sale, and the timelines are long. The Real Deal reported a $183 million construction loan for Park 315 and said completion is expected in 2029.

How an industrial lot became a housing site

The way Park 315 got approved helps explain the rest of Gilroy's pipeline. According to a 2024 Gilroy Dispatch report, Gandolfi Investments, a subsidiary of TenSouth, filed a preliminary application in July 2023 for what was then a 501-unit project. It filed under California's "builder's remedy." That provision of the Housing Accountability Act lets developers bypass local zoning when a city's housing element has not been found compliant with state law. Gilroy's housing element was not certified by the state until that August. The Dispatch reported that a July 2, 2024 letter from the state Department of Housing and Community Development said the project was eligible for builder's remedy protections. Gilroy approved the 530-unit version on February 6, 2026.

The same law is behind the largest for-sale proposal in town. Hecker Pass Residential, at 2480 and 2740 Hecker Pass Road, would put 116 single-family homes on a 24.3-acre site. Nine of them would be designated for extremely low-income buyers. The applicant is Scott Murray of Mana Camden Fund, LLC, and the Gilroy Dispatch reported that it was filed as a builder's remedy project. The city's project description, as quoted by the Dispatch, says:

"As proposed, the project does not align with the land use designations, zoning or several goals and policies of the Hecker Pass Specific Plan, nor with related provisions of the Gilroy 2040 General Plan."

Its Draft Environmental Impact Report was open for public comment from August 21 to October 5, 2026. The application was first filed on November 2, 2023, and the city's September 24, 2026 planning log still listed it as under consideration. So the largest single-family proposal in Gilroy is close to three years old and still has no decision.

The for-sale pipeline, by stage

Most of the remaining for-sale projects appear in the city's current project log and its approved and under-construction log. Most of them are listed as approved but not built.

Two builders have Gilroy communities marked "coming soon." KB Home lists Palomino Heights, a foothill community of two-story homes with 3 to 5 bedrooms in 1,714 to 2,008 square feet, and a sales office that is also listed as coming soon. Lennar lists Polesano at 6660 Manor Lane, with townhomes and paired homes from 1,747 to 2,067 square feet. Neither builder publishes a price yet.

These approvals also expire. The city's log says most planning approvals are valid for one year, or two years for subdivisions, and lapse unless they are implemented or extended. The Glen Loma Ranch maps were approved in March 2025, so under that general rule they come due in spring 2027. One Santa Teresa Boulevard townhouse approval for 202 units dates to 2018 and has needed a second time extension. In Gilroy, an approval is the point where a builder can choose to start building, and the delay between approval and construction can run for years.

What the resale market looks like meanwhile

If new for-sale homes arrive slowly, resale listings are what buyers will compete over through at least 2027. The Santa Clara County Association of REALTORS® September 2026 report shows a Gilroy market that moves at its own pace.

• Gilroy single-family, September 2026: 32 closed sales at a $1,129,000 median, 87 homes on the market, an average of 45 days on market, 100% of list price received, and a median of $531 per square foot.
• Santa Clara County single-family, September 2026: $1,880,000 median, 27 average days on market, 103% of list, $1,095 per square foot.
• Morgan Hill single-family, September 2026: $1,560,000 median, 21 sales, 82 listings, 35 average days on market, $618 per square foot.

At September's pace, Gilroy's 87 listings equal about two and a half to three months of sales. Its homes took about 18 days longer to sell than the county average, and the median price per square foot was roughly half the county figure. Sellers got full asking price on average, though not the overbids common elsewhere in the county. For buyers, that usually means time to schedule inspections and read disclosures before writing an offer.

Attached homes are a different situation. Gilroy recorded 2 condo and townhome sales in September 2026, at a $497,500 median, with 8 on the market. Much of the for-sale pipeline in the table is townhomes and paired homes: Polesano, the 42 at Howson Street, and the Glen Loma duets. That is where Gilroy's ownership options could grow the most, but only after construction starts.

Using the pipeline when you shop

The pipeline is most useful for understanding the area around a home you're considering:

1. Look up the parcels nearby. A resale home near Glen Loma Ranch, Las Animas Avenue or Hecker Pass Highway may sit next to a site already marked for hundreds of homes. The city's logs list each one by address and parcel number.
2. Treat "coming soon" as having no date. A builder without a sales office or posted pricing can't help you plan around a lease ending or a move-out date.
3. Compare price per square foot along with the median. Gilroy's $531 against Morgan Hill's $618 in September 2026 means the same budget buys noticeably more space a few exits south.

Once a nearby project or a "coming soon" community starts to matter for a home you're weighing, Sold By Team Robinson can pull the planning record for that address and walk you through the comps before you set an offer. If you own in Gilroy and want to know how your home sits against this pipeline, start with a free home valuation.