Solid Gains In Silicon Valley
San Jose multifamily regained its strength during the spring leasing season, with most fundamentals on track to outperform last year. Average advertised asking rents were up 0.8%, on a trailing three-month basis through May, to $3,414. That was 50 basis points ahead of the U.S. average. Year-over-year, Silicon Valley asking rents grew 3.6%, marking one of the strongest paces nationwide. The U.S. average ticked up 0.1% year-over-year, to $1,767. Occupancy withstood two solid years of supply, with the rate in stabilized assets ticking up 10 basis points year-over-year, to 96.6% as of April. Meanwhile, national occupancy slid 60 basis points, according to the U.S. multifamily market report.
Area employment also regained momentum, with job gains clocking in at 1.4% as of February, far outpacing the national average. Metro San Jose unemployment stood at 3.7% in April, besting both the U.S. (4.3%) and California (5.3%) rates, according to preliminary data from the Bureau of Labor Statistics. The metro added 17,400 net jobs in the 12 months ending in February, with education and health services accounting for the bulk of those gains (11,700). Promising projects for the sector include the $1.3 billion Good Samaritan campus expansion and Santa Clara Valley Healthcare’s growing footprint.
The past two years brought nearly 10,000 new apartments to the market’s inventory. Yet developers have slowed down somewhat, with only 283 units completed year-to-date through May.
Read the full Yardi Matrix San Jose Multifamily Market Report: July 2026
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