Where new homes are being built in Palo Alto
Palo Alto's Housing Element targets
Palo Alto has almost no vacant residential land, so new housing goes on former commercial, office and motel sites, mostly along El Camino Real, Park Boulevard and West Bayshore Road. The city's 2023 to 2031 Housing Element, readopted on April 15, 2024 and certified by the state on August 20, 2024, plans for 6,086 homes: 1,556 very low income, 896 low income, 1,013 moderate income and 2,621 above moderate income. The city reports 532 units already entitled or under review.
Most of that pipeline is apartments, including deed-restricted affordable buildings. The for-sale share is mainly three-story townhome communities with private garages and roof decks, built under the city's streamlined review for housing. In 2024 the city's Architectural Review Board held a single hearing on Cesano under the process adopted in 2022, with the planning director deciding afterward, as Mountain View Voice reported.
Rebuilt houses and ADUs in Palo Alto
The rest of Palo Alto's new homes are individual houses built after an older home is torn down, and accessory dwelling units added behind existing houses. For ADU rules, see our California ADU guide.
New home communities in Palo Alto
Prices and status below are from builder websites checked on October 30, 2026. Builders change prices and incentives often; confirm with the sales office.
28FIFTY by SummerHill Homes, Midtown
48 townhomes around a central community park, with a sales office at 2850 W. Bayshore Road, Palo Alto 94303. Homes have three or four bedrooms, three or four baths and about 1,436 to 1,975 square feet, and all have solar panels. SummerHill lists prices "starting in the high $1,600,000s" and reports 41 sold, 85% of the community. A quick move-in Plan 1 home at 2859 Josephine Lane, three bedrooms and 1,436 square feet, was listed at $1,698,000. Estimated HOA dues are about $443.66 a month at build-out. SummerHill names Greer, Henry W. Seale and Hoover parks nearby.
Cesano by SummerHill Homes, El Camino Real
29 three-story townhomes with private decks, sales office at 4335 W. El Camino Real, 94306, near the Mountain View and Los Altos borders. The site, about 1.3 acres on two parcels split by Cesano Court, included the former Country Inn Motel. Homes have three or four bedrooms, three to three and a half baths and about 1,493 to 2,097 square feet. SummerHill marks it "Now Selling" while under construction and does not publish prices online. Estimated HOA dues are about $588 a month at build-out, and the plan includes barbecue and dining areas, a play area and bike storage.
3200 Park by Dividend Homes, The Cannery
74 townhome-style residences at 3200 Park Boulevard, 94306, in a development Dividend calls The Cannery. Homes have three or four bedrooms, two and a half to four and a half baths and about 1,794 to 2,125 square feet. Dividend lists them "from the mid $2 millions" and "coming summer 2027". HOA dues are not yet published. If you want one of the first releases, ask to join the interest list and ask when the public report from the Department of Real Estate will be issued.
Acacia by Dividend Homes, near California Avenue (sold out)
16 townhome-style homes near California Avenue and the Caltrain station, at the 420 Acacia Avenue site. Plans reviewed by the city's Architectural Review Board in 2023, as reported by SF YIMBY, showed five two-bedroom and eleven three-bedroom homes in four buildings, each with a two-car garage. Dividend's site now says Acacia is sold out, so homes there come up only as resales. It is still a useful comparison for 3200 Park.
Single new houses on existing Palo Alto lots
Brand-new detached houses also come up for sale as individual rebuilds across the city. They are one-off projects, so there is no community HOA or builder sales office. Ask for the final building permit sign-off, the energy compliance documents, and the builder's written warranty, and have an independent inspection even on a new house.
Palo Alto new home communities compared
| Community | Builder | Homes | Bedrooms | Size (sq ft) | Price (Oct 2026) | HOA (est.) | Status |
|---|---|---|---|---|---|---|---|
| 28FIFTY | SummerHill Homes | 48 | 3-4 | 1,436-1,975 | From high $1.6Ms | $443.66/mo | 85% sold |
| Cesano | SummerHill Homes | 29 | 3-4 | 1,493-2,097 | Ask builder | $588/mo | Selling, under construction |
| 3200 Park | Dividend Homes | 74 | 3-4 | 1,794-2,125 | From mid $2Ms | Not published | Summer 2027 |
| Acacia | Dividend Homes | 16 | 2-3 | Not published | Resale only | Not published | Sold out |
Affordable rental projects listed by the city, such as Mitchell Park Place at 525 East Charleston Road (50 units), the educator housing at 231 Grant Avenue (110 units) and Wilton Court at 3705 El Camino Real (59 units), are not for sale; ask the city's housing division about eligibility.
Mello-Roos, HOA dues and taxes on new Palo Alto homes
None of the builder pages we checked mention a Mello-Roos community facilities district. That does not prove there is none: ask the sales office for the preliminary tax bill and the Department of Real Estate public report, which list any special taxes and assessments. Our Mello-Roos guide explains what to look for.
HOA dues are part of the price of a new townhome. SummerHill estimates $443.66 a month at 28FIFTY and $588 at Cesano, covering common landscaping, private streets, shared facilities, exterior and roof maintenance, building insurance and management. Read the budget and reserve study in the HOA documents; dues set by the builder can change once owners take control of the association. See our California HOA laws guide.
Your property tax on a new home starts from the purchase price, and you may get a supplemental bill for the change in assessed value after you close. See the Santa Clara County property tax guide for how the bill is calculated.
New vs resale homes in Palo Alto: what costs more
New townhomes are the cheapest way into a newly built Palo Alto home. A 28FIFTY quick move-in home at $1,698,000 is less than half Zillow's typical Palo Alto value of $3,592,240 (September 2026). Against resale attached homes the gap is smaller: Redfin's median condo sale in 94306 was $1,294,962 and the median townhome $2,097,503 for the three months to September 2026, on small samples.
Price per square foot tells the rest of the story. The quick move-in home works out to about $1,182 a square foot, against Redfin's $2,021 median for all Palo Alto sales and $2,111 for single-family homes in 94306. You trade land and a yard for a newer building, lower maintenance in the early years, solar and modern energy standards, plus HOA dues of several hundred dollars a month. For a broader view of prices, see our Palo Alto housing market report and Palo Alto condos guide.
Inspections and warranties on new Palo Alto construction
Builder warranties under California law
California's Right to Repair Act sets construction standards for new homes. Civil Code section 900 requires builders to give at least a one-year written warranty on fit and finish items such as cabinets, flooring, walls, countertops, paint and trim. Section 941 generally limits claims under the act to 10 years after substantial completion. Ask for the builder's full written warranty and the maintenance obligations it places on you.
Independent inspections on a new townhome
Hire your own inspector for a pre-drywall inspection if the builder allows it, and again before closing. Ask for an 11-month inspection before the one-year warranty ends. In an attached community, defects in roofs, decks and shared walls are often the HOA's responsibility, so read the CC&Rs to see who repairs what.
Buying a new home in Palo Alto with a local agent
The builder's sales staff work for the builder. If you want your own agent, ask the builder's registration rules before your first visit; many builders expect the agent to register you then. An agent can compare the builder's price with recent resales, read the purchase contract (which often limits your contingencies and sets the builder's own completion dates), and check the HOA budget and public report.
Agree in writing how your agent will be paid, and ask whether the builder will contribute to that fee. See our California commission guide, or meet our featured Palo Alto agent.