The 1st quarter of 2013 housing statistics are in for San Jose. After a quick review I can tell you that rents continue to rise but at a slower pace than we have seen in past quarters. As of the first quarter, the average price for a 3 bedroom, 2 bath is about $2,400.00 per month. A studio in San Jose averages approximately $1,330.00 per month. This is due to the fact that we have a very tight rental market. Last year during the first quarter the average vacancy rate was 3.8% This year the average vacancy rate is almost a full point higher at 4.7%. That is still good news for property owners. The natural vacancy rate is 5% and we are still below that and as a result rents remain Unaffordable for many. If you are school teacher you may not qualify to rent a 1 bedroom apartment in San Jose. Firefighters average about $80,000 in salary. With rents pushing upward they may not be able to afford a 2 bedroom property which averages about $2,150.00. There is also some good news as it relates to foreclosures. Trends reflect a long term downtrend with some very low statistical numbers for new filings. The sales market remains hot and inventories remain low there as well. This is pushing some owners to sell their properties. We recommend staying in the rental business of course. Low inventory in the sales market and in the rental market continues to push those rents upward. Now you have a summary of the report. Visit our website at www.calwestrents.com and click tools and resources to view the report for yourself.
Robert Collins