Today we are talking about the state of the rental market in San Jose, and overall the market is strong. It looks similar to last year, which is good news for investors and rental property owners. There’s a very low inventory, so not a lot of properties are available to renters. That has helped rental values to increase and we anticipate this will continue throughout the year.
Looking a bit further into the future, we have more good news. Google recently bought a huge piece of land in Redwood City, which means the start of another compound will soon be underway for offices. They are expected to hire thousands of people and create additional jobs in the next five years. That’s great news for our local economy and it will have a noticeable impact on the rental market.
With little additional housing being built, I think we can expect a strong market throughout 2015 and 2016. Right now, the vacancy rate is at one percent for our company. This is the lowest we have seen it since the dot com boom. The average San Jose vacancy rate is currently between three and four percent, which is also pretty good. In this area, we generally see a standard vacancy rate of around eight percent and Real Estate Connections is usually about half that. So, we’re pleased with our one percent vacancy rate and we think investors are in a good position to take advantage of the low inventory and high prices.
If you have any questions about the current market or our future forecasts, please contact us at Real Estate Connections, and we’d be happy to talk with you a little more.