I didn't blog on the third quarter housing numbers but I have been keeping track. Since 2009 I have been reviewing data provided by the City of San Jose. This data comes out quarterly and it helps us develop strategies for marketing our rentals. Go to our tools and resources page to see for yourself. I made some interesting observations by comparing the two quarters. First, in the 3rd quarter we saw the vacancy rate jump from 4.9% to 6.6%. This was news because the rental market had been racing along at a healthy pace like a well conditioned athlete at 4.9% or better for over two years. Then the 4th quarter statistics came out and, for the second quarter in a row, trended upward. Now at 6.9%, barely a tick away from 7% some might want to send up the flares, sound the alarm or launch the life boats.
Does this signal the end of our bustling rental revolution? Well it's hard to say. The Bay Area has always been desirable and even with California politics that make you shake your head and wonder if Yogi Bear is running things, we tend to recover quickly and endure hardship a little better than other markets. 7% isn't ideal but if it is any consolation, rents have continued to rise for most residential communities. That is unfortunate for any family making less than $103,000.00 per year but it does say something about the stamina, wealth and desirability of our local communities. The market ebbs and flows but I recommend being a little more aggressive with pricing your rental. Let us see where the summer leads us.