Updated 4/7/22
Year-Over-Year Rent Price Analysis
The subject of today’s snapshot is Downtown, San Jose, California. Based on our analysis, San Jose’s year-over-year average rents increased across all bedroom types.
Our standard neighborhood analysis uses a 6-month “LookBack” to establish an average baseline rent. The results from the 6-month LookBack analysis are presented in the tables below for San Jose 1–2 bedroom rents from April 1, 2021 – April 1, 2022:
As the table shows, 1BR increased by 19% from last year or $361 more, and the 2BR units increased by 12% from last year or $305 more. As demonstrated by the table, year-over-year performance for all selected bedroom types increased in rent prices from last year.
Market Activity: San Jose, California
Are you interested in investing in San Jose? Location is an important factor to consider when finding a profitable market for a rental property. The key characteristics of a good location include a strong economy, a growing labor force, and high rental demand. Below are some quick facts about the San Jose rental market that can help you with your investment analysis and overall decision.
- Price-to-Rent Ratio
- Avg 2BR House Price: $922,986 (According to Redfin)
- Avg Annual 2BR Rent: $35,340 ($2,945 x 12 months)
- Price-to-Rent Ratio: 26
- Population Growth:
- San Jose’s population increased by 7% in the past decade from 2010-2020 (According to US Census)
- Major Companies & Institutions:
- Cisco Systems, PayPal, Adobe, eBay, Western Digital, Infineon Technologies, Satellite Healthcare, Verifone, Align Technology, Netgear
- Employment Growth:
- Employment grew by 5% from November 2020-2021
About Rentometer
Rentometer is the #1 tool for comparing residential rent rates anywhere in the U.S. To succeed as a real estate investor, you need solid, current market intelligence to help you set the right rent rates in San Jose. Understanding local rents (and the factors that drive them) can help reduce investment risk, increase occupancy and improve your cash flow – and income. With Rentometer, you have local, current rents available right at your fingertips.
This article was written by the Rentometer Content Team. The Rentometer Blog features fresh takes and insights on rental housing topics, services, and technology.