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Ever since, San Jose has been governed by a liberal-managerial routine focused on development management, area services, and financial solvency. Consequently, the city embraced a basic strategy that established an "urban service location" (also called "urban development boundary") within existing city boundaries, restricted development in the eastern foohills, and deferred development in Coyote Valley to the south.

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The city likewise embraced more rigorous planning practices and a "pay-as-you-grow" system of paying for brand-new infrastructure. Nevertheless, This Author did not stop and even significantly limit growth; rather, they directed growth towards incorporated locations and mitigated the costs of growth. The city's real estate stock and population steadily increased during subsequent years.

With the boom of the electronic devices industry, specifically desktop computers and integrated circuits, the population of San Jose and Silicon Valley continued to grow rapidly. By 1980, the city's population was 629,442; it reached 782,248 by 1990; and at which point Santa Clara County as a whole had grown to 1,682,585 homeowners.

The typical 2003 house cost in Santa Clara County was roughly 330% of the national average. In action, the city has actually attempted to direct growth inward and densify already urbanized locations. In 1994, the city board approved another basic strategy with the original 1974 city development boundaries undamaged. In 1998, city voters rejected a tally procedure that would have alleviated development restrictions in the foothills.

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Many individuals's view of San Jose is still formed by the Dionne Warwick hit from 1968, "Do You Know the Way to San Jose?" Written by Burt Bacharach and Hal David (neither of whom had actually hung out there and selected the name because it suited the tune), it includes the lyrics, "there's a great deal of space in San Jose; there'll be a location where I can stay" and "I may go wrong and lose my method," and contrasts it to Los Angeles, "a large freeway." In 1960, the population of San Jose was just 204,000, simply over a fifth of the 2003 population.