San Jose lies near the San Andreas Fault; a major source of earthquake activity in California. The most serious earthquake, in 1906, damaged many buildings in San Jose as described earlier. Earlier significant quakes rocked the city in 1839, 1851, 1858, 1864, 1865, 1868, and 1891. The Daly City Earthquake of 1957 caused some damage. The Loma Prieta earthquake of 1989 also did some damage to parts of the city. The other faults near San Jose are the Monte Vista Fault, South Hayward Fault, Northern Calaveras Fault, and Central Calaveras Fault.
San Jose, like most of the Bay Area, has a Mediterranean climate. Unlike San Francisco, which is exposed to the ocean or Bay on three sides and whose temperature therefore varies relatively little year-round and overnight, San Jose lies further inland, protected on three sides by mountains. This shelters the city from rain and makes it more of a semiarid, near-desert area, with a mean annual rainfall of only 14.4 inches (366 mm), compared to some other parts of the Bay Area, which can get up to four times that amount. It also avoids San Francisco's omnipresent fog most of the year.
High economic growth during the tech bubble caused employment, housing prices, and traffic congestion to peak in the late 1990s. As the economy slowed in the early 2000s, employment and traffic congestion diminished somewhat. In the mid-2000s, traffic along major highways again began to worsen as the economy improved. San Jose had 405,000 jobs within its city limits in 2006, and an unemployment rate of 4.6%. In 2000, San Jose residents had the highest median household income of any city with a population over 300,000, and currently has the highest median income of any city with over 225,000 people.