Jobs, Population Growth Sustain Demand in San Jose
BySilicon Valley remains the nation’s top tech hub, as well as a strong multifamily market, although rent growth has been on a roller coaster ride. The market saw two quarters of double-digit growth in 2014. Then, at the beginning of 2016, rents rose 8 percent, before hitting seven consecutive months of negative growth. San Jose rents are now stabilizing, up 2.9 percent year-over-year through September.
A competitive economy is keeping San Jose’s unemployment rate down, at 3.8 percent as of July. The leisure and hospitality sector is leading employment growth, having added 7,400 jobs, a 7.3 percent year-over-year increase. Apart from corporate clients, this is due to companies such as Google, Tesla and Facebook attracting an increasing number of tourists to their headquarters. The technology sector, a Silicon Valley staple, continues to be the area’s main economic driver. And as major companies are relocating or expanding their footprint, the metro had more than 4 million square feet of office space under development as of the third quarter…
