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Market Report

San Jose Multifamily Market

3Q 2023

Recovering Demographics and Easing Supply
Result in Greater Near-Term Multifamily Stability

First-half demand topped all other major California metros. After having a net of more than 80,000 residents move out of the metro from 2020 to 2022, San Jose is back on track to regain an overall positive count of transplants this year. Lower levels of urban malaise than nearby Bay Area counterparts, as well as a relatively steady job market, are positioning the metro to record household growth above the long-term pace of 0.5 percent in 2023. At the same time, transplants’ options for housing remain limited. The difference between a typical monthly mortgage payment on a median priced house and the mean effective Class A rent was the second-highest among U.S. markets, at $7,150 in June. Top-tier options will likely see stronger demand, both from relocating households and locals that remain in the renter pool. Already in the first half, San Jose’s net absorption of 1,380 units was the highest among major California metros. 

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