Investment Thrives, Rents Decelerate
The San Jose multifamily market entered 2026 with mixed performance, but the metro continues to benefit from solid long-term fundamentals. Advertised asking rents ticked down 0.1%, on a trailing three-month basis through January, to $3,297, marking an improvement over the last two months of 2025. Silicon Valley occupancy in stabilized assets remained solid, at 96.5% as of December 2025, two full percentage points above the national average, according to the U.S. multifamily market report.
The metro’s employment market remained on a downward trend, with the growth rate at -0.2% through September, lagging the nation by 100 basis points. Unemployment stood at 4.0% as of December, 40 basis points below the U.S. figure, according to preliminary data from the Bureau of Labor Statistics. In the 12 months ending in September 2025, San Jose recorded a net loss of 1,500 jobs, with professional and business services marking the steepest decline (-8,200). Gains were led by education and health services (7,100) and leisure and hospitality (1,800). Following the San Jose Sharks’ lease extension through the 2050-51 NHL season, the city approved a half a billion renovation of the team’s main arena, the SAP Center.
Developers added 3,861 units to San Jose’s inventory in 2025, in line with the decade’s historical performance. Meanwhile, investment totaled $2 billion in 2025, making it the best-performing year of the past decade.
Read the full Yardi Matrix San Jose Multifamily Market Report: March 2026
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