Market Report
San Jose Multifamily Market Report
1Q 2026
Tech-Driven Capital Continues to Fuel
Tightening in Multifamily Market
Delivery plunge provides additional tailwind in a well-performing market. Limited land availability and high home prices have kept San Jose one of the least vacant multifamily markets nationwide since the pandemic. The tech sector’s high-paying jobs remain the backbone of the local economy, supporting the strongest rent growth in the U.S. in 2026. Submarket performance remains uneven: Mountain View, Palo Alto, Los Altos, and North Sunnyvale — the heart of Silicon Valley — posted near-3 percent vacancy rates in late 2025, with year-over-year rent growth exceeding 6 percent. In contrast, East and South San Jose, the metro’s less affluent areas, saw rent increases below 2 percent. This divergence is unlikely to shift in 2026 if tech momentum holds, though a broader economic slowdown could disproportionately impact the metro due to its industry concentration. Still, the steep drop in apartment deliveries — with the 2026 pipeline just 10 percent of 2025’s volume — should help stabilize fundamentals even if demand softens.
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