Despite the city approving tens of thousands of housing units since 2020, fewer than a third have broken ground, leaving San Jose well behind the state’s mandate to plan for 62,200 units by 2031. “I do think it’s important that we also look at the math and recognize we were way off in building the housing we need,” San Jose Mayor Matt Mahan said. The multifamily incentive program will jump from 1,800 to 3,600 units, with a a 50% cut in construction taxes. “However, participation in the multifamily housing incentive program is expected to reduce overall project costs by 5%. “Cities like Austin, Atlanta and Phoenix have all built significantly more housing than San Jose has in recent years, and those cities are all seeing rents fall, year over year, following their historic investments in housing construction.”