San Jose Multifamily Report – March 2025
Fundamentals reveal balanced, above-average performance.
San Jose’s multifamily market started the new year with mixed performance. On one hand, advertised asking rents were down 0.3 percent on a trailing three-month basis through January, to $3,145.
This was 20 basis points below the U.S. figure and marked the fourth consecutive month of contractions. On the other hand, the occupancy rate in stabilized assets grew 40 basis points, to 96.4 percent as of January, while the national figure slid 10 basis points, to 94.5 percent. Year-over-year rent growth stood at 1.8 percent through January, placing San Jose above most metros tracked by Yardi Matrix.
Employment growth stood at 0.5 percent year-over-year through November, 80 basis points below the U.S. figure, according to data from the Bureau of Labor Statistics. Over the 12-month period ending in November, San Jose added 5,900 net jobs. Education and health services led growth, up 12,300 positions, while four sectors recorded a combined loss of 14,700 jobs, with information taking the hardest hit (-5,700 jobs).
Meanwhile, supply dynamics remained stable in San Jose. The metro added 4,592 units, or 3.2 percent of total stock, in 2024, marking the second best year for deliveries in the past eight years. A total of 6,524 units were under construction in January, along with an additional 53,000 units in the planning and permitting stages. Meanwhile, investment activity signaled a slight recovery, with $1 billion in assets changing hands last year.
