San Jose has approved a new seven-story, 126-unit mixed-use multifamily project at 940 Willow Street in Willow Glen. This development used California’s Builder’s Remedy, a state law that allows housing projects to move forward even when local zoning would normally block them.
This approval is important for anyone who owns or wants to own multifamily property in Willow Glen or nearby San Jose neighborhoods. It shows that larger buildings and higher-density housing may become more common in an area that has historically been low-density.
Why Willow Glen Investors Should Pay Attention
Willow Glen has always been known for single-family streets, older commercial buildings, and tight zoning. Mid-rise housing was rarely allowed.
This project signals that things are shifting.
State housing laws are pushing cities to allow more multifamily development, even in areas where residents strongly oppose it. Investors should expect more changes like this.
Key Details About the 940 Willow Street Project
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7 stories
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126 units: studios, one-bedrooms, two-bedrooms, and a few three-bedrooms
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Mixed-use with ground-floor commercial
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Allowed through Builder’s Remedy due to San Jose’s past lack of a compliant housing plan
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Located in the heart of Willow Glen, near small businesses and residential neighborhoods
This project would not have been allowed under normal zoning rules. Builder’s Remedy removed those limits.
How This Affects Multifamily Investors in Willow Glen
1. Higher Density Is Now Possible
This approval makes it clear that Willow Glen is now open to taller buildings and larger apartment communities, especially when state housing laws apply.
Even parcels currently zoned commercial may support multifamily in the near future.
2. Land Values Could Increase
If mid-rise development becomes more common, land with commercial or older retail buildings may become more valuable.
Sites that once had limited potential may now support far denser projects.
3. Stronger Rental Demand
New development brings more residents, more foot traffic, and more attention to the area.
Renters who want new construction but prefer a quieter neighborhood than downtown San Jose may shift toward Willow Glen.
4. More Projects Will Likely Follow
Once one mid-rise project is approved, developers watch closely.
Expect more proposals along Willow Street, Lincoln Avenue, Bird Avenue, and other nearby corridors.
Potential Benefits for the Neighborhood and Investors
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More modern housing options
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Improved walkability and retail activity
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New residents and more consistent demand for rentals
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Better long-term support for multifamily values
Areas near new development often gain better lighting, improved sidewalks, and more stable commercial tenants.
Risks and Challenges to Consider
Neighborhood Resistance
Many Willow Glen residents strongly opposed this project, and future projects may face the same pushback.
This can slow down approvals, even if the city ultimately has limited power to stop them.
Infrastructure Concerns
Traffic, parking, and older sewer systems were key concerns raised.
Future developers—and investors—may need to budget for mitigation or upgrades.
Changing Neighborhood Character
The shift from low-rise to mid-rise buildings may cause friction.
Some buyers and renters welcome the change, while others may not.
What Investors Should Do Now
The approval of the 940 Willow Street project shows that multifamily development in Willow Glen is entering a new phase.
For investors, this may be the right time to:
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Review current holdings in Willow Glen and surrounding areas
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Evaluate underbuilt sites, especially older commercial parcels
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Consider long-term rental demand increases
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Explore opportunities before land prices adjust
This moment offers a window for early positioning while the market is still reacting to the first major project under Builder’s Remedy in this neighborhood.
Want help understanding how this Willow Glen development shift impacts your investment strategy? Contact R&Z Advisors to review your multifamily portfolio or explore new opportunities in Willow Glen and the surrounding San Jose market.
