Hidden Truth About Home Builders in Los Gatos
Timothy Alston | Broker
Aegis Luxury Real Estate · DRE# 01328224
Published
July 05, 2021
Foothill sophistication, downtown heart
Home builders across the country are beginning to ramp up construction in response to strong buyer demand, and that shift is already reshaping options for buyers in Los Gatos. If you have been searching for a home and coming up empty, new construction may be the path you have not fully considered yet. The builders ramping up activity right now could open doors that resale inventory simply has not.
You know how it goes. You find a home you like, and by the time you schedule a showing, it already has multiple offers. You watch homes in Los Gatos close above asking price, and you start to wonder if the market will ever give you a fair shot. And then the question starts creeping in: is this even worth it anymore?
A lot of buyers are sitting in exactly that place right now. But here is the part most people have not stopped to think about yet: the inventory problem that has been driving all that competition may be starting to shift. And it is not coming from resale listings.
What Does Your Search Actually Look Like Right Now?
Before we get into the data, take a moment to think about where you are in this process. Are you actively searching? Have you made offers that did not work out? Or are you waiting on the sidelines, hoping something changes?
What would it mean for you if, instead of fighting over the same handful of resale homes, you had access to a property that nobody else has lived in, one you could put your fingerprints on from day one? Have you ever seriously considered what that option could look like for someone in your situation?
Why Home Builders Are Starting to Change the Picture
Here is what the data is showing. Housing starts, the industry term for homes where construction has officially begun, recently hit their highest level since 2006. That is not a small number. That is a signal that home builders have been watching the same demand signals you have been living through, and they are responding.
Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors, noted that builders are currently constructing approximately 24% more homes than the typical pace seen over the past couple of decades. She projects housing starts could reach 1.6 million for the year, with further increases expected the following year.
That kind of momentum does not happen overnight. It takes time to permit, break ground, and finish construction. But the early signals are pointing in a clear direction: the builders ramp is underway, and more supply is coming.
Robert Dietz, Chief Economist for the National Association of Home Builders, pointed to another encouraging detail. The number of single-family homes permitted but not yet started construction rose to 142,000 units in a recent reporting period. Homes permitted but not started are future inventory you can sometimes purchase before a single nail is driven. That is an option most buyers are not even exploring.
Have You Thought About What Staying on the Sidelines Is Actually Costing You?
Here is a consequence question worth sitting with. If nothing changes in your search over the next 12 to 18 months, where does that leave you? Still renting? Still losing bids? Still watching home equity build for someone else?
Every month you do not own, you are building someone else’s wealth. Have you stopped to calculate what that number actually looks like over three to five years in a market like Los Gatos?
That is not pressure. That is just a question worth answering honestly for yourself.
What New Construction Could Mean for You Specifically
New construction is not always the right fit. Some buyers want established neighborhoods with mature trees and history. Others want a home that is brand new, built to current energy standards, and customized to how they actually live. Which category are you in?
If you lean toward the second, the timing may be working in your favor. As supply chain pressures around lumber and materials continue to ease, home builders are positioned to increase their output even further. That means more options, potentially less competition per unit, and in some cases, builder incentives that resale sellers simply cannot match.
For buyers exploring Los Gatos homes for sale, understanding the new construction pipeline alongside resale inventory could be the difference between continuing to lose bids and finally getting into a home that works for you. Does that feel like a gap in how you have been approaching your search so far?
A Note on How the Numbers Work in This Market
Inventory in Los Gatos real estate remains constrained relative to buyer demand, even as builders ramp construction activity higher. New-construction homes in Santa Clara County are selling at various stages of completion, including pre-permit and pre-foundation phases, meaning the window to act on certain properties opens earlier than most buyers realize. Home builders operating in this region have consistently reported waitlists for desirable floor plans.
What Happens Next Is Your Decision
Nothing about this is a pitch. The market data is what it is. Home builders are accelerating. Inventory is slowly improving. And buyers who understand both the resale and new construction sides of the market are going to have more options than those who are only watching the MLS.
If this has you thinking differently about your search, the next step is simple. A conversation with Timothy Alston, Broker at Aegis Luxury Real Estate, is not a commitment. It is just a straightforward look at where you are, what you are looking for, and whether new construction fits into that picture alongside resale homes. No pressure. No pitch. Just clarity.
Would that kind of conversation be worth 20 minutes of your time? If so, reach out directly at (408) 207-4593. The next move is yours.
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Aegis School Excellence Index · 2024-25 performance data
Serving districts: Los Gatos Union Elementary SD (K-8), Los Gatos-Saratoga Joint Union High SD (9-12). School district boundaries can change; please verify current enrollment boundaries and program offerings directly with the school district.
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Broker · DRE# 01328224
Aegis Luxury Real Estate
Harvard Business School Online, Certified Master Negotiation
23+ Years Silicon Valley Real Estate Experience
Retired Military Veteran
Copyright © 2026 MLSListings Inc. All rights reserved.
The data relating to real estate for sale on this display comes in part from the Internet Data Exchange program of the MLSListings™ MLS system. Real estate listings held by brokerage firms other than Aegis Luxury Real Estate are marked with the Internet Data Exchange icon and detailed information about them includes the names of the listing brokers and listing agents.
Based on information from the MLSListings MLS as of July 9, 2026. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.
These statistics are generated using information from the MLSListings Inc. multiple listing service, but have not been verified and are not guaranteed. MLSListings Inc. disclaims any responsibility for the accuracy and reliability of these statistics. This information should not be relied upon for real estate transaction decisions.
Data updated every 15 minutes. Visit www.MLSListings.com for more information.
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Aegis Luxury Real Estate · Timothy Alston, Broker, DRE# 01328224 · 10080 N. Wolfe Rd Ste SW3-200, Cupertino CA 95014 · (408) 207-4593
Last updated: July 10, 2026 | Data reflects July 2026 MLS statistics
