It's an excellent time to be an investor in San Jose, and we're going to explain why. Whether you're trying to plan your investment activities for the rest of 2017, or you're already thinking about 2018, there are several considerations that may impact what you will do with your rental properties in the San Jose area.
Rents are going up, and currently the incline is at around 2 to 3 percent in and around San Jose. Not enough new housing is being built in the metro area, which means that there is a limited supply of high quality rental housing and lots of demand for it. That's going to help you attract good tenants and keep your rent levels high, especially if you have a well-maintained property in a desirable location.
Job opportunities and local economic growth are making San Jose a great place to live and rent. With Apple doing a lot of construction into 2018, and several professional, competitive jobs with companies like Facebook and Google in the Silicon Valley area, people are moving to San Jose and looking for places to live. It's an attractive area for anyone who wants to work in the tech sector, and lots of growth in the job market to keep the tenant pool stable. The city of San Jose is also close to a lot of other major cities, including Oakland and San Francisco. There's a lot of recreation, professionals sports, and culture to get excited about. Tenants come from local universities, hospitals, and other thriving sectors outside of technology.
Many surrounding cities are dealing with rent control and the restrictions that come with it. Eventually, rent control in some form will likely be adopted by all the surrounding cities in the Bay Area. We are keeping an eye on how San Jose is responding to this trend, and we will keep all of the owners and investors we work with informed and prepared.
If you have any questions about the rental market in San Jose or any thoughts on property management in San Jose, please contact us at Zell Associates, Inc. We would be happy to tell you more.