Multifamily San Jose Report – Winter 2019
- Jan 31, 2019
San Jose’s tech sector propelled the metro to a position among the world’s fastest-growing economies. The ranking is reflected in the multifamily sector, where demand for housing has increased rents by 5.0 percent year-over-year through November to $2,862, more than double the national average.
Employment growth has been solid, hovering around the 3.0 percent mark all year long, hitting 3.3 percent in September, above the 2.0 percent national rate. San Jose added 36,500 jobs in the year ending in September, with all but one sector seeing net positives. Consequently, the unemployment rate clocked in at 2.5 percent as of September. Education and health services led growth with the addition of 9,600 jobs and is expected to sustain its performance. In early 2019, Stanford’s new 35-acre Redwood City campus is anticipated to open and add 2,700 jobs. Other notable developments estimated to boost the area’s economy are JPMorgan Chase’s 195,000-square-foot fintech campus in Palo Alto’s Stanford Research Park and Google’s plan to build a mixed-use campus that will accommodate some 20,000 employees by 2035.
Deliveries fell in 2018, as only 1,370 units were added through November, about 1.1 percent of total stock. The transaction volume hit $935 million through the first 10 months of the year, with an overall per-unit price of $503,827, as assets continued to rise in value in an undersupplied market.