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There are housing development underway between south San Jose and Gilroy, but unfortunately, the jobs are not located there. While that may remove some pain off of the real-estate market further North, opening more development south of San Jose won't do much good if all the jobs stay in the Palo Alto / Mountain View/ Sunnyvale/ Santa Clara region.

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That's true. I guess I see the "jobs area" expanding. I'm thinking at some point, companies will pitch it as a job perk alongside the arcade machines and catered meals--"our office is located in south San Jose where your rent will be two thirds of what it would be in Palo Alto!" Not to mention the office rent would be lower. I guess this all depends on what exactly attracts the company to Silicon Valley and how much that attraction is degraded by being on the fringes of the Valley.

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