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Overview:

The rental momentum in San Jose closed out 2024 on a high note and carried straight into the new year. According to Yardi Matrix’s National Multifamily Report from December 2024, San Jose posted a 2.1% year-over-year rent increase in December, ending the year with sustained rental demand in the region. 

This upward trend has continued into 2025, with June year-over-year rent growth at 3.2%, according to Yardi Matrix's National Multifamily Report, up from 2.6% in May. CoStar data shows rents increased by 2.0% quarter-over-quarter in Q1 2025. Additionally, CoStar’s July rent data lists San Jose as one of the highest-priced rental markets in the country, with average asking rents of $3,227. These data points reflect ongoing demand in the region’s rental housing market.

Meanwhile, homeownership is becoming even more out of reach for many. In December 2024, the San Jose metro hit a record-high typical home value of $1.59 million, an increase of nearly 8% (or more than $100,000) year-over-year—the fastest growth among the nation’s 50 largest metro areas.

With home prices surging and rental supply falling short, the pressure on San Jose’s rental market continues to intensify. This reinforces the growing need for new multifamily housing to meet demand and ease the region’s housing crunch.

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Median Rent
CoStar’s July data ranks San Jose among the nation’s priciest rental markets, with average rents at $3,227.
Rent Growth
  • June 2025 YoY:+3.2%
  • Q1 2025 QoQ: +2.0%
Silicon Valley Home Prices
In December 2024, the San Jose metro reached a record-high typical home value of $1.59 million, marking an increase of nearly 8%—over $100,000—year-over-year, the fastest growth among the nation’s 50 largest metro areas
Rental Competition
A recent study reveals intense competition for rental units, with an average of 12 people vying for each rental in Silicon Valley
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  • CoStar’s July rent data highlights San Jose as one of the most expensive rental markets in the United States, reporting average asking rents of $3,227

  • Read the details here

  • According to CoStar, San Jose now ranks 3rd in rent growth momentum, rising from 1.9% a year ago to 3.1% today

  • Read the full article here

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  • According to CoStar, San Jose saw a 2.0% quarter-over-quarter rent growth in Q1 2025

  • Read more here

  • Yardi Matrix’s June 2025 report shows San Jose’s year-over-year rent growth rose to 3.2%, up from 2.6% in May

  • Read the full report here

Yardi June 2025
Year-to-Date Rent Growth: 
Up 7.9% in 2024

Three-Month Rent Growth:
Advertised asking rents increased by 0.8% through May, outpacing the 0.3% national average and marking the fourth consecutive month of positive movement
 
Silicon Valley Home Prices: 
Average home prices in Silicon Valley have exceeded $2 million, contributing to a competitive rental market as potential homeowners turn to renting

Rental Competition:
A recent study reveals intense competition for rental units, with an average of 12 people vying for each rental in Silicon Valley
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  • The San Jose metropolitan area has for years had the highest home values in the United States

  • The area set record high at the end of 2024, with a typical home value of $1.59 million in December 2024

  • Values in the San Jose metro area rose by nearly 8%, more than $100,000, from December 2023 — the fastest rate among the 50 largest areas

  • Read the full article here

  • Where’s the toughest place to find an apartment in California? Spoiler Alert, it's Silicon Valley

  • Read the full article here

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