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Urban Catalyst • Market research
San Jose
Multifamily Report
A fresh look at apartment rents, vacancy and housing supply in San Jose and Silicon Valley.
October 2026 edition · Reviewed October 20, 2026
Monthly rent data: September 2026 · City quarterly data: Q2 2026
Market overview · October 2026
San Jose Multifamily Market:
Trends and Outlook
Sources: CoStar / Apartments.com, September 2026 · Apartment List, October 2026 · City of San José, Q2 2026
San Jose’s multifamily market continues to show strong rent growth relative to the nation. CoStar’s September 2026 report puts annual growth at 8.2%, second behind San Francisco among the major markets covered, compared with 1.5% nationally.
Apartment List’s October report provides an independent perspective: September rents increased 7.6% year over year in San Jose and 9.1% across the metro. The city median reached $3,154 per month, while the broader metro median was $3,373. These estimates use a different methodology from CoStar’s figures.
The City’s Q2 housing update reports 3.0% apartment vacancy and average effective rent of $3,027. Its housing production figures show more units permitted than completed during the quarter, underscoring the distinction between the development pipeline and homes delivered.
Together, these reports point to rental-market strength, while affordability, construction costs, financing and future supply remain factors to watch. Market conditions vary by property, and recent growth does not guarantee future rents or investment results.
Source numbers correspond to the linked reports below. Median, average and effective rents are different measures.
01 / Rent growth
San Jose remains near the top.
CoStar places San Jose second behind San Francisco for annual rent growth among the major markets covered in its September release.
The national average rose 1.5% year over year, even as rents edged down 0.08% during September.
Annual apartment rent growth
Selected CoStar markets · September 2026 · Year over year
Independent perspective
San Jose and the broader metro.
Source: Apartment List · [2] San Jose Rent Report; [3] National Rent Report.
Apartment List rent snapshot
October 2026 report · September observations
| Geography | Median rent | Annual growth |
|---|---|---|
| San Jose | $3,154 | +7.6% |
| San Jose metro | $3,373 | +9.1% |
| United States | $1,388 | −0.4% |
Read the measures together.
Apartment List reports monthly San Jose rent growth of 0.6%. Its San Jose median sits below the broader metro median.
Its national report also places San Jose and San Francisco at the front of large-metro annual rent growth.
02 / Local fundamentals
A closer view of San Jose.
The City’s Q2 report, published August 18, provides the latest linked quarterly view available on its housing market page when reviewed.
San Jose apartment vacancy
San Jose · All classes · Q1 versus Q2 2026
Source: [4] City of San José / CoStar · Q2 2026, slide 4
Effective rent by apartment size
San Jose · Q2 2026 · Monthly average
| Apartment type | Effective rent |
|---|---|
| Studio | $2,361 |
| One bedroom | $2,722 |
| Two bedrooms | $3,381 |
| Three bedrooms | $4,185 |
03 / Housing supply
Permits are a pipeline.
Completions add homes.
The City reports 1,624 units permitted in buildings with five or more units during Q2, compared with 173 units completed in that category.
Multifamily housing production
San Jose · Q2 2026 · Units in buildings with 5+ units
Questions, answered
San Jose multifamily FAQs.
Why do the rent figures differ?
The reports cover different geographies, dates and rent definitions. An average effective rent, a San Jose median and a metro median answer different questions.
Does the vacancy figure describe September?
No. The local vacancy observation is from Q2 2026. Monthly rent releases are more recent; a newer rent report does not update the quarterly vacancy measure.
Do stronger market rents guarantee investment results?
No. Outcomes also depend on acquisition and development costs, debt, operating expenses, timing, regulation and execution. Market trends cannot establish a property’s future returns.
How should I use the charts?
Compare figures within each chart. Check its period and geography before comparing it with another source. All charts here were recreated from linked reports, with values and definitions provided in the page.
Research library
Go directly to the reports.
Sources checked October 20, 2026. Publisher pages can change as new reports are released.
- [1] CoStar / Apartments.com: September 2026 rent growth (PDF) ↗Published September 30, 2026 · Major-market rent growth and national context.
- [2] Apartment List: San Jose Rent Report ↗October 2026 edition · September city and metro rent estimates.
- [3] Apartment List: National Rent Report ↗Published September 29, 2026 · October edition and national comparison.
- [4] City of San José: Q2 2026 Housing Market Update (PDF) ↗Published August 18, 2026 · City rents, vacancy and housing production.
Methodology: Figures are reproduced as reported, without blending providers. Chart scales begin at zero except the annual growth chart, which includes negative values. The City’s report covers city limits; CoStar’s market designation and Apartment List’s metro are broader geographies. The production chart includes market-rate and affordable housing. No forecast is shown.
Urban Catalyst
Explore our work in San Jose.
Urban Catalyst tracks local apartment fundamentals as part of its focus on downtown San Jose real estate development.
For informational purposes only. Third-party data is believed reliable but may be revised; accuracy and completeness are not guaranteed. This material is not investment, legal or tax advice, an offer to sell securities, or a solicitation to buy securities. Past performance does not guarantee future results. Investments involve risk, including loss of principal.