Los Gatos' housing stock is a mix of historic and custom-built homes set in mature, landscaped neighborhoods. Victorian-era and early-20th-century homes cluster near downtown and the Almond Grove district, while hillside neighborhoods feature larger custom estates with bay and mountain views. Mid-century ranchers and newer contemporary homes fill the valleys, and the surrounding unincorporated mountain communities offer wooded, larger-lot properties. The town's restricted geography — bounded by open space and hills — keeps supply limited, making Los Gatos one of the South Bay's most sought-after and established residential markets.

Los Gatos is organized around its historic downtown, with distinct neighborhoods fanning outward. The Almond Grove area near downtown holds some of the town's oldest Victorians, while the east side and the area toward Blossom Hill offer more family-oriented subdivisions. Hillside districts near El Sereno and along the mountains provide larger lots and views. Adjacent Monte Sereno, a separate small city, and the unincorporated mountain communities served by the Loma Prieta district extend the Los Gatos sphere. Saratoga, Campbell, and San Jose's Almaden Valley lie just across the town's borders.

Los Gatos offers a polished, small-town lifestyle with immediate access to the outdoors. Residents walk to the downtown's boutiques, restaurants, and coffee shops, gather at the weekly farmers' market, and attend concerts and events in the town's plazas. The Los Gatos Creek Trail brings cyclists and joggers through town, and weekend recreation means hiking El Sereno, boating at Vasona Lake, or driving over the hill to Santa Cruz. The culture is family- and community-centered, with highly involved schools and a strong arts and food scene — upscale yet relaxed compared with the larger Bay Area cities.

Los Gatos is known for its strong public schools. The Los Gatos Union School District serves elementary and middle grades, and the Los Gatos-Saratoga Joint Union High School District operates Los Gatos High School, a well-regarded campus dating to the 1920s. Mountain-area students attend the Loma Prieta Joint Union Elementary district before feeding into the high school district. The town's schools consistently rank among the region's best and are a primary driver of its residential appeal, complemented by a number of respected private schools in the surrounding South Bay.

Los Gatos sits at the junction of Highway 17 and Highway 85, with Interstate 280 just to the north. Highway 17 climbs through the Santa Cruz Mountains to the coast, while Highway 85 and 280 provide fast routes across Silicon Valley to San Jose, Cupertino, and the Peninsula. The Highway 17 Express bus links Los Gatos to San Jose's Diridon Station, connecting to Caltrain and BART. Downtown is compact and walkable, and the Los Gatos Creek Trail offers an off-street cycling corridor, though most regional commuting is by car.

Open space is woven into Los Gatos. The Los Gatos Creek Trail runs through town to Vasona Lake County Park, while El Sereno Open Space Preserve offers 1,400 acres of hiking, mountain biking, and horseback riding with views over Lexington Reservoir and the Sierra Azul range. Lexington Reservoir provides boating and fishing, and Castle Rock State Park's sandstone formations and redwood trails lie just up Highway 35. Los Gatos Creek County Park and the town's neighborhood parks round out everyday recreation, with the broader Santa Cruz Mountains and coast within a short drive.