ApartmentList.com puts out a monthly report with data on the rental market here and all over the U.S. Of most interest is the going rate for rentals. This morning I received their update and below are a few of the main points on the rental housing market. The San Jose metro area’s median rent went up 1% over the last year per the article there. They write:
“Currently, median rents in San Jose stand at $2,113 for a one-bedroom apartment and $2,648 for a two-bedroom. San Jose’s year-over-year rent growth lags the state average of 1.1%, as well as the national average of 1.4%.”
San Jose metro area – cost of an apartment rental
San Jose rental costs as compared to other cities / towns in Santa Clara County:
Apartment list provides lots of interesting tidbits, such as Cupertino’s rent falling slightly this last year and Los Gatos having the fastest growing rental prices. Do check out the full report using that top link. It’s interesting to me how much more costly it is to rent in Cupertino than in other competitive areas such as Palo Alto, which also has great schools.
Rental Housing Market Trend Highlights:
The median reflects the point at which half sold for more and half for less that price. When the median sale price goes down but the average goes up, it suggests not the homes are losing value, but rather that buyers are purchasing less expensive homes. For the condo and townhouse market, this can happen if the price of houses becomes more in reach. If you can afford a huge townhouse or a smaller house, many house hunters will choose the smaller house. Prices softened here after the peak of May 2018, so likely those on the cusp between the two choices of house or townome/condo opted for the single family home.
How does the rental market compare to other areas?
This chart is from the same source cited above. Here we can see how rental prices stack up in San Jose versus San Francisco (more expensive still) and other major cities – all the rest of which are less expensive. That said, New York City is very close to San Jose, just a hair behind.
To learn more, see the full report here:
(Note: images in this article are used with permission by ApartmentList.)
Finding a rental home in Silicon Valley can be challenging. Where to look? Can a Realtor help you? (Not very much.)
In many areas of the U.S., real estate agents actively work the rental market. In those areas, owners are willing to pay a commission for the service, and houses and condos are listed in the local multiple listing service.
Not in Silicon Valley, though. Instead, it’s a land of “for rent by owner”. A few properties may be on the MLS (see link below), but hardly any. Far less than 5%.
Please beware that there are many scams around rentals. Be extremely careful! Some scams ask for money upfront, before you can even see the property. Many of these homes are actually for sale, so Google the address to check.
Sometimes we Realtors have “courtesy rentals” where we share wants and needs without being paid (as a courtesy to our clients). Don’t count on finding a property this way, but if you have a Realtor you’ve been chatting with, it’s not a bad idea to let him or her know what (specifically) you are wanting and if he or she hears of something, can get back to you with that match. Odds of that working are less than 1% so use the list above, or drive around where you’d like to live! If you’re a corporate relocation situation, your hiring company may be able to assist you with additional resources.
What do rentals cost? One source of info is Rentometer.com. I found it to be a little low in some areas but still a good starting point. www.Rentometer.com
Why is it so hard to find a rental home in Silicon Valley now?
Finding Rental Housing in San Jose, Santa Clara County and Silicon Valley
At the moment, many people relocating to Silicon Valley are reporting that it’s harder to rent a home than to buy one. What’s the reason for that?
Two things are happening that create pressure:
- There are a lot of companies hiring, and many high tech people, especially, are moving to Silicon Valley
- People who have lost homes in foreclosure, or who had to do a short sale to avoid it, are not able to buy for at least a few years. They may double up with family or friends for awhile but eventually do rent.
With demand increasing like crazy, rents are increasing like crazy too. It’s the old tale of supply and demand: more demand than supply exists in the rental housing market today.
Just watch out for the scams! If a price sounds too good to be true, it probably is. I wrote about this not too long ago, please have a look:
Scam: Online ads for houses listed for sale are sometimes scraped and offered as rentals by those wanting your money!
Finding a place to rent – how do people locate one in Santa Clara County? Where can you find properties to lease or rent? I have a list of resources on my Valley of Hearts Delight blog – please click on the following link.
Finding Rental Housing in San Jose, Santa Clara County and Silicon Valley
What about a broker or agent? Can a Realtor help you to find a rental home in Silicon Valley? Most of the time, a real estate sales person will not be of much help in finding rental properties, and that’s because they aren’t usually listed in the MLS (and the MLS is the way in which we are paid).
Sometimes, though, a rental is listed on our Multiple Listing Service (MLS). You can check it out directly at www.MLSListings.com – just select rental under “type”. The vast majority of rentals are online via Craigslist, though, and a real estate agent has no role in that type of rental property. Just beware of the scams, mentioned above, and always google the address of the property that looks interesting to see if it’s for sale also. If it is listed as for sale, the odds are that it’s not really for rent.
On occasion, members of the real estate community will know of a “courtesy rental” property, meaning that a client wants to rent it out but not necessarily put it on Craigslist or the MLS. Instead, it’s word of mouth. You do not need to call every real estate professional in town to ask if they have any courtesy rentals. Instead, turn to your trusted Realtor and ask him or her to inquire for you. Most agents are very happy to send out the request within their company and to top agents or managers of others nearby to ask on your behalf (but it’s no good if 10 Realtors are all circulating the same request, so please don’t give in to temptation and ask everyone for this favor.)
Many people who move to Silicon Valley want to rent initially. Los Gatos is a great place to start! Many newcomers say that Los Gatos is the “most European” of Silicon Valley’s cities and towns. I agree!
In addition to the El Gato Penthouse (in downtown LG on Main Street), a newer complex with some furnished rental units on the edge of Los Gatos next to Netflix is Aventino. It’s a luxurious community with granite counters in the kitchens, a beautiful pool and spa area, and secure parking.
The Bay Tree Apartments are in the Almond Grove District (downtown or “walk to town” Los Gatos) and they have both furnished and unfurnished, but they do not always have vacancies. Here’s their contact info to check back later or see if there’s a waiting list: 347 Massol Aven Los Gatos, CA 95030 (408) 354-7317.
Want to learn more about living in Los Gatos? Please visit my Live in Los Gatos blog and see selected pages on my popehandy.com website devoted to the town of the cats.
Want to purchase a house, condo or townhouse in Los Gatos? Here are some links to help you with your research.
Buy a home in Los Gatos
Browse Los Gatos Homes for Sale on my popehandy.com site:
Los Gatos real estate market trends – uses live charts and list prices (not solds)
Los Gatos real estate market statistics – uses sold prices for Los Gatos, Monte Sereno and all of Santa Clara County
Search for rental housing on the MLS on my sites:
1- find a home by map
Go to http://www.popehandy.com/find_silicon_valley_real_estate_and_homes_for_sale_by_map.html
In lower left corner you’ll see “property types” – scroll down and find Residential Rental and click the box to select it
You can input bedrooms, bathrooms etc. in the fields to the right of it. I input 3 bed or more and 2 bath or more and got just 25 results
2 – simple city or town search on my blog
Go to http://www.SanJoseRealEstateLosGatosHomes.com
Scroll down and view the left sidebar – you’ll see Real Estate Search in the left sidebar (just over the list of zip codes) – input the area/size you want and where it says “all property types”, do a pull down and you’ll find “rentals” as one of your choices.