The average rent for multifamily units in San Jose hit an all-time high heading into mid-year up, according to a report from Yardi Matrix research.
Year over year rents are up by double-digits and are now 3.0% higher than pre-Covid.
Here are some highlights from the report and a little food for thought:
- Annual rent growth for four- and five-star properties in San Jose is 11.4%, according to CoStar.
- Rents for four- and five-start units in San Jose are averaging just over $3,500, compared to a national average of around $1,706.
- The San Jose metro area is experiencing the lowest unemployment rate in a decade at 2.2%. This compared to 4.6% for California generally, and 3.6% for the country as a whole.
- Median home prices in the region have more than doubled over the past decade. As a result, the monthly cost of owning is often more expensive than renting, says CoStar.
- The area added 63,100 jobs for the 12 months ending March. Employment grew by 5.8%, 1.1% above the national average.
At least part of the rise in rents can be explained by basic economics: demand for apartments has exceeded supplies in a lot of places. We’re doing what we can to address this challenge in San Jose with projects that include Icon/Echo, with 389 multifamily units, and TMBR, with 250+ residential units.
We’re not the only ones building here. Google, for example, continues to move forward with its $156 million project near Diridon Station that will include multifamily in addition to office, retail, restaurants, and entertainment. No one can do it all, but collectively companies like Urban Catalyst and Google are helping to reimagine downtown San Jose into an even better place to work, place, and invest.
To find out more about how you can be a part of the demand for multifamily housing in downtown San Jose, contact us HERE.
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