San Jose Multifamily Report – December 2024
While improving, San Jose multifamily is still showing some mixed fundamentals.
San Jose’s multifamily market entered the fourth quarter with mixed results. Average advertised asking rents were down 0.2 percent 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 percent, as of October, above the 94.7 percent national average.
Unemployment in the metro reached 4.1 percent in September, on par with the U.S. figure, according to preliminary Bureau of Labor Statistics data. After registering a new wave of tech layoffs in 2024, San Jose’s employment growth rate stood at 0.3 percent 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 2024. Investment remained afloat despite the increased cost of capital, as $693 million changed hands, for a $13 million year-over-year increase.
