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Market Report

San Jose Multifamily Market Report

2025 Investment Forecast

Job Growth in Higher-Paying Careers Aids San Jose’s
Rental Market as Larger-Scale Projects Deliver

Demand warrants new supply, maintaining market equilibrium. San Jose has fully recovered from 2023 job losses and is set for a stronger labor market. This will help the metro’s household formation reach its highest level since 2015. Submarkets between Mountain View and Downtown San Jose are likely to see multifamily fundamentals improve amid a high density of major employers expected to grow staffs in 2025. Notably, North Sunnyvale and Santa Clara, which had the most apartment deliveries in 2024, also recorded the largest net absorption tallies. The former is expected to stay the least vacant submarket under a scant 2025 delivery pipeline, while the latter is set to see the, albeit warranted, largest supply influx locally. Meanwhile, demand for Class C units in the South Sunnyvale-Cupertino area may remain strong. Last year, the area noted a triple-digit basis point decline in Class C vacancy, indicating renters covet lower-cost housing options in the metro’s most expensive submarket.
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