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 May 2025 year-over-year rent growth up 2.6% according to Yardi Matrix's National Multifamily Report, up from 2.4% in April. Q1 2025 data shows rent growth rising another 2.0% quarter-over-quarter (CoStar), showing a strong start to the year.  San Jose also holds the top spot for median rent in the nation at $3,028, according to Apartment List's May 2025 rent data,  making it the only market where median rent exceeded $3,000.

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.