Skip to main content

Scroll Down

Market Report

San Jose Multifamily Market
Report

2025 Investment Forecast

Expanding Economic Activity Drives San
Jose’s Renter and Investor Demand

Improving labor market helping sustain market equilibrium. San Jose, fully recovered from 2023 job losses, is poised for stronger labor market growth in 2025. The metro’s unemployment rate decreased to be in line with the national average at the onset of this year, which will help the metro’s household formation growth rate hit its highest level since 2015. Submarkets between Mountain View and Downtown San Jose are well positioned to see new renter demand and subsequent improvements in fundamentals, given large employers like Google and Amazon are expected to expand their workforce in 2025. Among the submarkets in this stretch, North Sunnyvale is positioned to hold as the least vacant as development eases following an influx of units last year. Nearby, Santa Clara will receive the largest 2025 supply influx among submarkets. Demand for Class C units in the South Sunnyvale-Cupertino area, meanwhile, should remain robust after interest in obtainable housing in the metro’s priciest submarket led to a triple-digit basis point decline in Class C vacancy last year. East San Jose also featured this trend, with mid- and low-tier apartment vacancy falling at a similar magnitude. Class A may see this effect to a lesser degree, as deliveries are to stay mild in 2025.

Related Research

Back to top