What does it cost to rent a 1 bedroom apartment in Silicon Valley?

Relocation question - what does it cost to rent a 1 bedroom apartment in Silicon Valley?Moving to the San Jose or San Francisco Bay Area? You may be wondering what does it cost to rent a 1 bedroom apartment in Silicon Valley? (You can find a list of rental housing resources on this site here.)

The range in rental prices varies with location, condition, and amenities – exclusive or covered parking, air conditioning, dishwashers, a small yard for downstairs units, and pools are not all automatic.

  • In general, it is very difficult to find a decent 1 bedroom for under $2,000 per month (but possibly as low as $1800).
  • An average 1 bedroom is likely to run $2300- $2600 in most areas.
  • It’s not hard to find one at $3,000 per month, especially in nicer and more in-demand areas such as Mountain View, Sunnyvale, Cupertino, Saratoga, and Los Gatos.
  • If you move to one of the expensive areas and get to enjoy extra perks, you may be spending $3000, $3500 or more per month.

If you are working on a smaller budget, you’ll find a few studio apartments available and they will of course be more affordable. Apartments lacking air conditioning, pools, or other highly sought after amenities will also be offered for a bit less. Another option is to look a little further out and consider units without AC, pools, etc.

Apartment homes with a yard are renting for about 15% more than those with no outside space, from what I have seen.

Recently I saw a studio in West San Jose (fairly expensive area) for about $2100. The complex does have a pool, but the units don’t have air conditioning of any kind. I also viewed a 1 bedroom in Campbell for about the same price but it included a wall AC unit. It’s very similar to purchases in that if you get closer in, you get less home for your money.

A couple of things to beware of when looking for rental housing

Something to be aware of is that some houses have Accessory Dwelling Units that seem inexpensive, and often it’s because something is missing, whether it’s a decent amount of square footage, a kitchen will a full sized oven and stove, etc. Not long ago I saw such a place but the kitchen was really just a wet bar with a microwave and toaster oven. The old adage is accurate: if it sounds too good to be true, it is too good to be true. (more…)

San Jose apartment rental prices

San Jose apartment rental prices have softened during the coronavirus pandemic. Each month, ApartmentList.com produces a national and local report on rental market trends, including prices. If you are interested in renting an apartment, it’s a good idea to bookmark this page so you can circle back to it every few weeks. Apartment List National Rent Report

Here are some of this month’s highlights:
  • Rents in San Jose decreased by 2.9% month-over-month, and are down 12.2% since the start of the pandemic in March, the #5 biggest decline among the nation’s 50 largest cities.
  • Year-over-year rent growth in San Jose currently stands at -11.1%, the lowest rate in October of any year since the start of our estimates.
  • Median rents in San Jose currently stand at $1,777 for a 1-bedroom apartment and $2,111 for a two-bedroom.

How are the San Jose apartment rental prices as compared to other areas in the U.S.?

Here’s their graphic, but visit the link above to see the whole report.

San Jose apartment rental prices and national rent data as of October 2020

Tools You Can Use When Relocating to the San Jose Area

If you’re relocating to the San Jose area, there are a few tools you can use for resources as you evaluate different parts of the region. When I started this website, I had books listed that you could purchase. Today, mostly I have websites that you should bookmark – for free!

Natural & Environmental Hazard Information Tools You Can Use

Natural hazards are found throughout the United States, often the major one people consider is the one hundred year flood plain. Here in the Golden State, we have some additional concerns relating to fire and earthquake risks.

  • California MyHazards can display a map anywhere in the state with information relating to liquefaction zones, earthquake faults, 100 year flood plains, and high fire risk areas.
  • Flooding from Dam Failure (potentially caused by earthquakes as well as other possibilities) is scary. Learn more about those zones at the link I’m providing here. (As of this writing, the Approved Inundation Maps link is not working.)
  • A Barclay’s Locaide will outline earthquake faults, flood plains, and other natural hazard zones you might want to know about. This is now out of date, but you may be able to locate a used one online or see if a local real estate association of Realtors bookstore has it available. 
  • Earthquake Zones of Required Investigation can be used throughout the state to identify landslide, liquefaction, and other zones relating to quakes.
  • Something else to know is that there are state mapped earthquake faults (the more active ones, such as the Hayward or San Andreas Fault) and also the city, town or county mapped fault zones (for example, the Shannon Fault). The latter may have been dormant for 11,000 years or more.
  • Buying a home? Sellers usually provide a Natural Hazard Report, an Environmental Hazard Report, and a Tax Report from a company such as JCP. This same company / site has a great amount of information on local conditions on its About the Hazards page that newcomers would benefit from.
  • When buying a home in California, consumers are given a link to download brochures, or one combined document, on a variety of hazards. I’m not sure that most of them take the time to read it, but it’s excellent info and I highly encourage anyone living in CA, whether renting or owning, to read it:
    Homeowner’s Guide to Earthquake Safety & Environmental Hazards

Environmental Hazard Zones

  • Local concerns also include environmental ones, such as SuperFund sites. here you can see SuperFund sites in reuse (meaning offices and homes on those sites).
  • Some sites with spills, leaking underground storage tanks, or other issues can be found at this Cleanups in my community page (nationwide info)
  • Mercury, or quicksilver, was mined in Almaden (New Almaden and related mines) and east Los Gatos (Guadalupe Mine area) – it is a naturally occurring element in cinnabar. For that reason, creeks in those areas should not be entered or fished in.
  • Asbestos is another naturally occurring element here. It was prized for being somewhat fire resistant and was mined under Communications Hill. It’s something to investigate if you want to live in that area.
  • Oil, gold silver, and other elements were mined here as well as granite (we still have quarries active in Santa Clara County today, a couple in the Cupertino area and one in the hills by Lexington Reservoir just outside of Los Gatos). Some old mines are not mapped if they are on private land, so one of the disclosures we have relates to unmapped, abandoned mines., which may be found in more rural pockets of the county.

Other Priorities for the Tools You Can Use list

In addition to natural and environmental hazards, there are big plusses that will attract new residents.

It is also helpful to have a knowledgeable Realtor as your resource!  Please call me if you’d like assistance in your move to SIlicon Valley. I’d be happy to help you.

 

Related Reading

Silicon Valley liquefaction zones (on the Valley of Heart’s Delight blog)

Is there a radon risk in Silicon Valley homes? (Valley of Heart’s Delight blog)

Coronavirus

Computer with words Coronavirus and real estate - online onlyHow quickly things can change. The novel coronavirus, or Covid-19, is growing at a quick speed in the US, and in Santa Clara County particularly.  With the necessary Shelter in Place order across California, real estate has pretty much ground to a halt (see my related article on the coronavirus impact on real estate sales here).

Coronavirus: is work or a task essential or non-essential?

The crux of the matter comes down to what the government deems essential versus non-essential work or activity.

YES:  Grocery stores, pharmacies, police, fire fighters, medical work, bankers, contractors doing home repairs (electrical, roof, plumbing) or residential construction, and title companies fall under essential. Walking one’s dog, getting exercise by walking, jogging, or biking are essential – but individuals must keep that 6′ social distance while doing so.  Restaurants are essential but can only operate takeout food (link to article on my Live in Los Gatos blog about eateries offering meals and even groceries at this time). Home sales can get completed, thanks to the county recorder’s office accepting e-recordings. Notaries are allowed to meet with signers (but no real estate licensees or lenders present).

NO: Real estate in-person work is non-essential under this coronavirus order. Real estate agents must stay home, like everyone else. No showings, no appointments in person, no open houses, no meeting appraisers or inspectors. Movers are a no-go, too.

NO for now – may change? Home inspectors seem to be non-essential, but it’s possible that it could be changed a little as the home confinement for everyone continues. It would not surprise me if both inspectors and appraisers could work, but only alone, without buyers, sellers, or agents present sometime in the coming weeks. We Realtors are watching this carefully to see what happens. There’s a push for permitting virtual notarization that I suspect will go through (and become permitted at some point soon).

Appraisers are working for some lenders. Others are not. Today I got an update from my wonderful Wells Fargo lender: “For purchase and no cash out refinance, Wells Fargo will use Drive-By Appraisal report.  We will prioritize the purchase appraisal order. ”

Is it possible to buy a home during the Shelter in Place order?

Technically, it is possible to get into contract right now. Closing during this coronavirus Shelter in Place period is another matter. What can happen is:

  • you may write an offer with your agent and sign it using DocuSign, Authentisign, or another electronic service
  • you can wire your initial deposit to the title company
  • you are able to review all of the disclosures, reports, and pre-sale inspections etc. and sign them electronically
  • you must meet with a mobile notary or escrow officer to sign the final documents
  • the title company can record the deed electronically

All of that is good, but what cannot happen right now, under the current order, is still a big hurdle:

  • Appraisers cannot visit the home (perhaps that will change?)
  • Inspectors cannot go to the property (may change?)
  • your agent cannot do his or her Agent Visual Inspection Disclosure (mandated, no work arounds exist)
  • you cannot visit the house or condo

I would not suggest that you buy a house sight unseen, which we call a blind offer. It’s dangerous and unwise. There’s enough danger with coronavirus alone without compounding it!

My belief is that this Shelter in Place will go on for 2 or 3 months as that is what the governor of California said last night. In that case, it would be practical to allow certain real estate functions to move forward in a limited way so that people can buy and sell. It would make sense to permit private showings with clients staying 6′ away from their agents, for inspectors to visit the property with no one else present, and same with appraisers.

There is a lot we do not know. With sales pretty much stopped, we don’t know where values are. Are they falling? Are they rising? There’s no data. With the stock market falling and unemployment rising, it seems like prices should fall in real estate, but we never really know until there’s a look into the past.

We don’t know how long the situation will last. Given that there’s no vaccine, and it will be 12-18 months before we get one, it’s probable that the Shelter in Place will not stretch that whole period. But it seems probable that there will be cycles of sheltering and more liberty based on the number of cases in any given area. I believe that we will have spurts of freedom and being able to sell and close escrows between periods of home isolation.

This is an unfolding situation that seems to be changing almost daily, do expect it to change along with the number of cases of coronavirus, hospitalizations, and deaths from Covid-19. Leaders know that residents do need to buy and sell homes, and they are working on a path forward.

Meanwhile, you can work on your pre-approval, or better yet, a pre-underwritten approval which will enable you to buy faster once that is more possible.

How to find the median rental price by zip code

Looking to get a sense of the rental prices in Silicon Valley? Today I’ll show you how to find the median rental price by zip code for homes in Silicon Valley by using my weekly Altos Research real estate market reports for Silicon Valley.

We will use Cupertino’s housing market as an example, because many high tech employees plan to work in that city. My Altos Research report for Cupertino. You can access it at this link  Mary Pope-Handy’s Cupertino Market Report. When you click through, it will look something like this:

Mary Pope-Handy's Cupertino Market Report - updated weekly by Altos Research

There are tabs for houses and condos, and you can toggle as desired.

On the right, you will see the market profile. Below, view one for the single family homes and one for condos. I have outlined where the median rental value shows so that you can locate it fast.

Cupertino collage - how to learn median rental prices

Not really wanting to live in Cupertino? Find the “Search Anywhere” field near the top and enter a city name or a zip code and you can spot check areas of interest.

Subscribe for the weekly reports

Please click the “Subscribe” button in the upper right corner to get any of the reports emailed to you weekly.

 

Not a rental Realtor

NB: I do not work in the rental market as 99.99% of rental homes are “for rent by owner” and there’s not a place for a Realtor in that structure.  When folks first move to Silicon Valley, though, they usually want to rent for awhile, so I will sometimes provide rental info because I know it’s needed.  Interested in buying or selling? Please do reach out to me! Best to start with email so that a phone call can be scheduled: mary@popehandy.com as I get a lot of spam / robo calls. However, feel free to call first if you prefer – 408-204-7673.
Related reading:

Silicon Valley neighborhoods

San Jose Districts and their Values (Feb 2018)

Facts about San Jose, the Capital of Silicon Valley

How’s the Silicon Valley real estate market?

Aerial vew over San Jose looking east - photo by Mary Pope-Handy

Aerial vew over San Jose looking east – photo by Mary Pope-Handy

What’s going on with the Silicon Valley real estate market? Is it as crazy as ever with multiple offers, overbids, and few or no contingencies?  Today we’ll consider the regional view, aka The Big Picture, to provide a sense of what is going on. For info on smaller areas or districts, please head over to my main blog, the Valley Of Heart’s Delight Blog – SanJoseRealEstateLosGatosHomes.com. There cities, towns, and districts are looked at in depth.

Seasonal Patterns in Silicon Valley

The quietest time (number of sales, traffic, etc.) and lowest prices in the real estate market tend to fall in January, or sometimes in December.  As with most years, this time around January had the lowest prices.

Most years, we see strong buyer activity with multiple offers early in the year – often emerging as a pattern by the middle of February.

Right now, some home sellers have not accepted that home prices have dropped 20% or so since the peak last spring (more or less depending on location, pricing tier, school districts, property condition, and so on). Those properties are not moving quickly.

For sellers who understand the current market conditions and have priced appropriately, home buyers are flocking and multiple offers are back – in force.

In short, there’s a kind of duality right now, so it’s a weird time. Homes that were sitting on the market but get a price reduction may linger awhile, and then sell with multiple offers. This catches buyers and their Realtors off guard.

To provide regional Silicon Valley market conditions, today I’ll post info on  the three counties (San Mateo, Santa Clara, and Santa Cruz).

In terms of expense, San Mateo is the most costly of these 3, and overall it becomes less expensive in Santa Clara County, then less expensive still in Santa Cruz County.  Alameda County has a little of Silicon Valley, but that area is in a  different MLS system so is not part of this analysis.

Next, a look at sale prices an market conditions for single family homes and condominiums / townhomes by county.

What does it cost to buy a house or condo in Silicon Valley?

In Santa Clara County (home to Palo Alto, Cupertino, Sunnyvale, Mountain View, San Jose, and my own Los Gatos), the average sale price is $1,413,000 and the median sale price $1,185,000 – quite a bit lower than last spring.

Santa Clara County
http://rereport.com/scc/print/Mary.PopeHandySCC.pdf

Please click to enlarge:

Santa Clara County trends at a glance

 

For condominiums and townhouses, of course, it is a more affordable.

Santa Clara County condo trends at a glance

 

In San Mateo County (home to Redwood Shores, Foster City, Menlo Park, San Mateo), the average sale price is about $1.78 million for houses recently sold.  The median is a little lower at $1.425 million. (more…)