San Jose Multifamily Market Report

Elevated construction meets a shifting market. San Jose is set for a historic year of apartment deliveries. Many projects launched in 2022 will reach completion. While vacancy stood at 4.0 percent in March — the lowest since 2022, when those projects were greenlit — the rate is projected to rise 100 basis points due to record-setting supply this year. Employment has also softened. White-collar job losses were offset only by modest gains in government, education and health care. Still, rising home prices — up 10 percent in 2024 — may drive more demand for apartments from priced-out buyers. These competing forces are reshaping the market, as rising supply and uneven demand drive rent and occupancy volatility.