More Pain For Renters In San Jose
Rent increases for April in San Jose ranked sixth in the nation, according to apartment listing service Abodo. Demand for property in the Silicon Valley city has been strong and this new data indicates the boom still has room to run.
Low apartment inventory in the area is likely behind the uptick, Abodo’s Sam Radbil tells Bisnow. Demographics and surrounding markets also play a role in San Jose's apartment market dynamics. “Young adults can’t afford to buy a home or don’t want to pay extremely high rent prices, so they’re moving outside of major cities like San Francisco. This has led to more demand for rentals in surrounding cities and an increase in price San Jose," he added.
San Jose recently was rated the best city for small business in the country. Economic growth is often accompanied by rising real estate prices forcing officials to balance the two competing demands.