In 2021 and 2022, net absorption averaged 764 multifamily units in Central San Jose — ranked second out of nine Silicon Valley submarkets, only behind Mountain View, Palo Alto, and Los Altos. Central San Jose’s average net absorption over the previous 10 years was 300 units, showing how successful the area has been in attracting new residents or ones who moved out in the first year of the pandemic. These challenges have led to soaring rents and fierce competition for available apartments, forcing many residents to relocate to more affordable areas. However, for multifamily property owners and prospective investors, particularly in San Jose, there are compelling reasons to remain optimistic.
San Jose is emerging as a stronghold in the Silicon Valley multifamily market. According to the latest collected data, the North San Jose/Milpitas area leads the region in key metrics such as net absorption and occupancy rates, despite no new housing being built there for over a decade. A recent agreement has paved the way for future development, but it will take decades for those homes to be approved and even longer to complete, making now an opportune time to invest in this area.
Central San Jose is also a hotbed of multifamily activity. With significant net absorption and a construction boom. In 2021 and 2022, net absorption averaged 764 multifamily units in Central San Jose — ranked second out of nine Silicon Valley submarkets, only behind Mountain View, Palo Alto, and Los Altos. Central San Jose’s average net absorption over the previous 10 years was 300 units, showing how successful the area has been in attracting new residents or ones who moved out in the first year of the pandemic.
In summary, while California’s housing crisis presents significant challenges, strategic investments in San Jose’s multifamily market offer promising returns. For those looking to capitalize on these opportunities, areas like North San Jose and Central San Jose are worth serious consideration.
Are you ready to explore investment opportunities in San Jose’s thriving multifamily market? Connect with our team at The R&Z Group to discuss how you can capitalize on this emerging submarket. Whether you are looking to buy or develop, we provide the insights and expertise to help you make informed, profitable decisions. Contact us today to get started on your next investment.
