San Jose among Handful of Bay Area Cities to Post Year-Over-Year Rent Decline
Everyone knows that housing in the Bay Area is expensive – but could there be some relief in sight? It looks that way, at least in San Jose. Here’s what landlords, San Jose property managers and investors need to know about the latest market update.
According to RentCafe’s latest Apartment Market Report, San Jose is one of a few Bay Area cities that experienced an average rent decline between May 2016 and May 2017.
Before residents rejoice (and San Jose property management companies panic!), it’s important to know that the rent decline was marginal at best. Unlike San Francisco, which posted a 3.3% decline, or Sunnyvale, which saw a 2% decline, rents in San Jose only dipped 0.2%.
Some have suggested that decline may be a result of construction boom that’s taken place in San Jose since the recession. North San Jose was just named the #3 submarket in the entire nation for apartment construction activity, coming in behind only Long Island City, Queens and Downtown Los Angeles.
On a positive note, San Jose rents are up month-over-month. Average rent prices increased 0.9% between April 2017 and May 2017, which gives San Jose property managers, landlords and investors reason to believe that the market will still be strong for the foreseeable future.
“We’re still bullish on the San Jose market,” says Mynd co-founder Colin Wiel. “Any temporary dip in rents is balanced by the fact that San Jose is still among the strongest apartment markets in the nation.”
RentCafe data confirms that point, with San Jose coming in at #10 on its list of U.S. cities with the highest rents as of May 2017. According to RentCafe, San Jose apartments are renting for $2,579 on average. When compared to San Francisco ($3,369), San Mateo ($3,019), Sunnyvale ($2,680) and Santa Clara ($2,650), San Jose property managers and landlords appear to be serving up a bargain.
It may seem like we are geeking out over this data, but its important data for San Jose property management companies, apartment owners and prospective investors to track closely. Staying on top of market trends helps landlords and San Jose property managers price their units accordingly in order to lease units quickly and at maximum value. Indeed, market rents are one of the key performance indicators (KPIs) that should be monitored most closely.
San Jose property managers, landlords and investors interested in learning more about the local market can find a host of information about San Jose on Mynd’s Landlord Journal. Subscribe to the Landlord Journal to have these and other market updates delivered right to your inbox!