Metro Reports Multifamily Market Real Estate Trends

San Jose Multifamily Market Report – December 2024

Cover image for the San Jose Multifamily Market Report December 2024
Image by simonkr/iStockphoto.com

Development and Sales Stable, While Rents Slip

San Jose’s multifamily market entered the fourth quarter with mixed results. Average advertised asking rents were down 0.2% on a trailing three-month basis through October, to $3,171, 10 basis points below the U.S. figure. As development slowed down, occupancy climbed 50 basis points year-over-year, to 96.4%, as of October, above the 94.7% national average, according to the U.S. multifamily market report.

Unemployment in the metro reached 4.1% in September, on par with the U.S. figure, according to preliminary Bureau of LaborStatistics data. After registering a new wave of tech layoffs in 2024, San Jose’s employment growth rate stood at 0.3% in August, 110 basis points below the U.S. figure. Over the 12-monthperiod ending in August, San Jose added 7,100 net jobs. Education and health services led growth, with 12,000 positions gained, while information and manufacturing each lost 6,100 jobs. Major projects underway include HCA Healthcare’s upcoming $1.2 billion expansion of Good Samaritan Hospital.

Completions this year through October totaled 2,601 units, which was a return to San Jose’s historical average. Meanwhile, construction starts decreased significantly, with developers breaking ground on only 889 units in the first 10 months of the year. Investment remained afloat despite the increased cost of capital, as $693 million changed hands, for a $13 million yearover-year increase.

Read the full Yardi Matrix San Jose Multifamily Market Report: December 2024

About the author

Tudor Scolca-Seusan

Tudor Scolca-Seusan has worked as an Associate Editor with Yardi for a combined four years. He is focused on writing Yardi Matrix multifamily market reports, in-depth articles and interviews/Q&As for Commercial Property Executive, specializing in industrial real estate and data centers.

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