Rents Accelerate, Construction Slows
San Jose’s multifamily market recovered faster than other West Coast markets, despite facing economic uncertainty at the start of 2025. Average advertised asking rents were up 0.6%, on a trailing three-month basis through May, to $3,259. The rate clocked in 30 basis points ahead of the U.S. figure, according to the national multifamily market report. San Jose was among the top-performing markets for year-over-year rent growth, with the rate at 2.6%, while the national average was up 1.0%. Although 2024 was the metro’s second-best year in terms of new supply in the past eight years, occupancy in stabilized assets inched up 10 basis points over 12 months, to 96.3%.
San Jose’s unemployment rate stood at 3.9% in April, down only 10 basis points since the start of the year, according to preliminary data from the Bureau of Labor Statistics. Silicon Valley employment improved slightly from last year, but with gains still in the red, at -0.2% through March. In the 12 months ending in March, Silicon Valley saw a net loss of 6,000 positions. Only education and health services (9,000 jobs), government (1,800) and other services (700) recorded improvements.
Completions totaled 1,597 units year-to-date through May, which accounted for 1.1% of existing stock. Activity slowed down, moving closer to historical averages, but there were still 5,202 units under construction as of May, along with an additional 56,000 apartments in the planning and permitting stages.
Read the full Yardi Matrix San Jose Multifamily Market Report: July 2025
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