Custom Home Builder in Palo Alto: Design, Permits and Construction
Type Five designs, permits and builds custom homes in Palo Alto, with architects and a general contractor on one team and a fixed budget before construction starts. On a standard R-1 lot, Palo Alto caps a new house at 45% of the first 5,000 square feet of lot area plus 30% of the rest, up to 6,000 square feet, with a 30-foot height limit.
Building a new home in Palo Alto
If you're replacing a house on a Palo Alto R-1 lot, what you can build is set by three things: the floor area formula, the daylight planes that shape the second story, and the trees on and next to your lot.
Type Five is a design-build firm based in Berkeley. We're best known for ADUs, and we use the same approach on full-size homes: a site-built modular design system for layouts, details and pricing, and conventional wood framing built on your lot. That gives you a custom house without starting every decision from a blank page.
As seen in the New York Times.
How big can a new house be in Palo Alto?
Lot size | Maximum floor area |
|---|---|
6,000 sq ft | 2,550 sq ft |
7,500 sq ft | 3,000 sq ft |
10,000 sq ft | 3,750 sq ft |
15,000 sq ft | 5,250 sq ft |
20,000 sq ft | 6,000 sq ft (cap) |
Palo Alto R-1 rules that shape your house
- Height. 30 feet, or 33 feet with a roof pitch of 12:12 or steeper.
- Setbacks. 20 feet at the rear, 6 feet at interior sides, 16 feet on a street side, and a contextual front setback based on neighboring homes.
- Daylight planes. The side daylight plane starts 10 feet up at the property line and rises at 45 degrees. The rear plane starts at 16 feet and rises at 60 degrees.
- Coverage. Multi-story homes can cover up to 35% of the site.
On a narrow lot, the side daylight plane usually decides how much second floor you get. We model it early so the plan, roof and window placement work with it rather than fighting it.
Two-story homes and Individual Review
A new two-story house, or a second-story addition of 150 square feet or more, goes through Palo Alto's Single-Family Individual Review unless it meets the city's objective standards for two-story homes, adopted in 2025. Individual Review is a discretionary planning step that happens before the building permit, so it adds time and gives neighbors a say in privacy and massing.
For many lots, designing to the objective standards from the start is the faster path. We'll tell you early whether your plan can meet them and what it would cost you in design flexibility.
Protected trees in Palo Alto
Palo Alto's tree ordinance, updated May 1, 2024, protects native oaks, bigleaf maples and incense cedars 11.5 inches or more in diameter, coast redwoods 18 inches or more, and most other trees 15 inches or more. Invasive and high-water-use species are excluded.
A protected tree near the building footprint can move a foundation, change the excavation plan or rule out a basement. We get an arborist report early and design around it.
How long a Palo Alto custom home takes
Permitting a new single-family home takes longer than an ADU. A public analysis of state housing data found a 2024 median of 285 days from application to permit for single-family homes in the Bay Area, compared with 182 days for ADUs.
Individual Review, tree work and utility upgrades can add to that. We build those steps into the schedule from the start, and our build schedule page shows how we sequence construction.
Other ways to add space in Palo Alto
A new house isn't the only option. An ADU or junior ADU can add a separate home without touching the main house; see our Palo Alto ADU builder page. SB 9 can allow a lot split or a second unit on many single-family lots; our SB 9 guide explains how it works.
If you're still comparing firms, our guide to hiring a Palo Alto custom home builder covers what to ask.
What sets Type Five apart?
- One team. Architects, engineers, permit managers and builders work together from the first site visit to move-in.
- A fixed budget before you build. We give you a guaranteed budget for the whole project before construction starts.
- A design system, not a blank page. Our site-built modular system gives you tested layouts and details you can customize, which keeps design time and surprises down.
- Wood-framed and built on site. Every home is framed in place by our crews and built to last for generations.
What our clients say
Don’t just take our word for it. Read more in-depth client testimonials.
"The design process with Type Five felt more streamlined, and the experience allowed us to stay focused and avoid being overwhelmed by too many options."
“I feel like we got all the benefits of a custom build, without the uncertainty.”
"Type Five was really attractive because that's what they were offering: a full-service construction company with an established design system."
Planning a new home in Palo Alto?
Tell us about your lot and what you want to build. We'll walk you through what the R-1 rules allow and what it would take to design, permit and build it.
How our process works
One team takes your project from first sketch to move-in, with a fixed budget before construction starts.
FAQs about building a custom home in Palo Alto
Short answers to the questions Palo Alto homeowners ask us most.
How big a house can I build in Palo Alto?
On an R-1 lot, 45% of the first 5,000 square feet of lot area plus 30% of the rest, up to 6,000 square feet. A 7,500-square-foot lot allows 3,000 square feet of floor area.
What is the height limit for a house in Palo Alto?
30 feet in the R-1 district, or 33 feet if the roof pitch is 12:12 or steeper. Daylight planes also limit the shape of the upper floor.
Does a two-story house need Individual Review in Palo Alto?
Yes, unless it meets the city's objective standards for two-story homes. Individual Review applies to new two-story homes and second-story additions of 150 square feet or more.
Which trees are protected in Palo Alto?
Native oaks, bigleaf maples and incense cedars 11.5 inches or more in diameter, coast redwoods 18 inches or more, and most other trees 15 inches or more, excluding invasive and high-water-use species.
How long does it take to permit a new house?
In the Bay Area, the 2024 median from application to permit for a single-family home was 285 days, according to an analysis of state housing data. Individual Review and tree work can add time.
Does Type Five build prefab homes?
No. We build every home on site with conventional wood framing. Our site-built modular design system speeds up design and pricing, but the house itself is built from the ground up on your lot.
Can I add an ADU when I build a new house?
Yes. Many owners build an ADU alongside a new home. See our Palo Alto ADU builder page for the city's ADU rules.