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Market Report

San Jose Multifamily Market

2Q 2023

Silicon Valley Maintains the Bay Area’s
Lowest Apartment Vacancy Rate

Rental availability recalibrates to the historical norm. Announcements of layoffs and hiring freezes by major tech companies have been making headlines as of late; however, the recent news has not been indicative of San Jose’s overall labor market. The metro has posted job gains in each month since February 2021, while recording an unemployment rate more than 250 basis points below its long-term average entering April of this year. Although net apartment absorption has slowed nationally due to a flattening economy, the stability of Silicon Valley’s labor market helped sustain rental demand and moderated upward pressure on availability. In fact, at 4.4 percent, vacancy in San Jose was the lowest among Bay Area metros, and only 40 basis points above the market’s 2019 level. The rate should remain relatively steady throughout 2023 as completions fall to a four-year low, limiting competition from new supply.

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