Los Gatos, CA

  • Overview
  • Performance
  • Listings
  • Buy Box

Key Performance Metrics

Market snapshot

Performance indicators for the Los Gatos short-term rental market based on reliable data.

Listings

68 / 147

Reliable / Active

Cap Rate

1%

Middle-Earners Gross Yield

Revenue

$34,782

Middle-Earners Revenue

Occupancy

74%

Middle-Earners Occupancy

Home Value

$2,697,025

Median Home Sale Price

Top Earners

$59,198

Top-Earners Revenue

Los Gatos

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Los Gatos.

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C

Challenging to Investors

Los Gatos Regulations

Los Gatos allows STRs, but caps licenses at 5% of the housing stock and enforces strict annual day caps (180 hosted/30 unhosted) while requiring primary‑residence status, onsite parking, 24/7 local representation, inspections, multi‑step licensing, and quarterly TOT remittance, with revocation after three violations in 12 months.

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About Los Gatos

Los Gatos is a small, affluent town nestled in the foothills of the Santa Cruz Mountains in Santa Clara County, California. With a population of roughly 30,000, it has the feel of a polished village — tree-lined streets, a walkable downtown, and a quiet affluence shaped by its proximity to Silicon Valley. The town is best known for its charming main street, its historic role as a stagecoach stop on the route between San Jose and Santa Cruz, and as a gateway to the redwood forests, vineyards, and coastline of the Santa Cruz Mountains. It lies about ten miles southwest of downtown San Jose, roughly an hour south of San Francisco, and is a popular stop for travelers heading over the hill to the Pacific coast.

Downtown Los Gatos is the heart of the community, centered on a stretch of North Santa Cruz Avenue that mixes independently owned boutiques, tasting rooms, and longstanding restaurants with shaded sidewalks and small plazas. Visitors come for the small-town feel, the proximity to the Los Gatos Creek Trail, and a year-round calendar of street fairs and the weekly farmers' market. It is about a five-minute drive from almost anywhere in town and serves as the main draw for guests who want a strollable, food-and-wine evening without leaving the neighborhood. The town itself has a long history dating back to the 1860s, and many of the buildings in the core reflect that late-nineteenth-century character.

Just a few minutes from downtown, Vasona Lake County Park offers 137 acres of oak-shaded lawns, a small lake for paddleboats and fishing, a miniature railway, picnic areas, and a popular playground, making it a reliable family stop. The park is about a five-minute drive from the town center and pairs well with the adjacent Los Gatos Creek Trail, which stretches for miles toward Lexington Reservoir and is favored by joggers, cyclists, and stroller-pushing parents.

A short drive up Highway 9 or over the hill on Highway 17 puts guests into the heart of the Santa Cruz Mountains, where redwood groves, wineries along the Santa Cruz Mountains wine trail, and hiking trails at places like Big Basin Redwoods State Park offer a quick change of scenery. The same routes lead down to the Santa Cruz Beach Boardwalk and the Pacific coast in roughly 30 to 45 minutes, depending on traffic.

For short-term rental owners, Los Gatos offers an appealing combination: a steady, well-heeled visitor base of Silicon Valley business travelers, weekend escapees from San Francisco, and families drawn to the mountains, the wine country, and the coast. Its compact, walkable downtown, easy airport access via San Jose, and proximity to both redwood forests and the ocean make it a comfortable year-round base for guests who want quieter surroundings without giving up convenience.

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