Why Invest in San Jose Real Estate?
Real estate prices in San Jose are on the rise, the city being among the most desirable living destinations in the country. With homes being sold above the listing price in record times, there is limited opportunity for investment, but appreciation is at its all-time high.
Known as the Capital of the famous Silicon Valley, San Jose is nowadays the ideal destination for young professionals who work for tech companies such as PayPal, Adobe, and Cisco. This makes it a great investment opportunity for those interested in rental income. Since the city’s local economy is supported by some of the world’s most successful startups, the job market will only be growing, making the real estate market stronger as well.
Investment Consideration for San Jose Real Estate
There are a number of factors to consider, including:
- Expansion of the job market – As the biggest city in Northern California, San Jose has been chosen as the headquarters for a number of tech giants, such as Apple, Google, and PayPal. Since the city is still more affordable than other places in the San Francisco Bay Area, many more companies are announcing their arrival as well. As a result, the economy, especially in the technology sector, is thriving and supporting a projected job growth of 4% during 2019. For the San Jose real estate market, this means a lot of new renters and homebuyers.
- High occupancy rate – While 56.6% of dwellings in San Jose are owned by their residents, 39.6% are rented and only 3.8% remain vacant. This points to a high demand for housing units, but it also means an existing rental income for anyone who can afford to invest in San Jose real estate.
- Increasing rent prices – Although homeowners are in the majority, there are still plenty of renters in the San Jose area. Appreciation rates have been rising during the last couple of years and are projected to increase even more. During 2017 alone, they rose to a whopping 10.3%, which is a lot of profit for those who are in the renting business. On the other hand, home prices are rising as well, with a projected growth of 3.8% during 2019.
- Desirability as a living destination – With an increasing number of opportunities for young people, which has even been ranked number one on Forbes’ list of happiest cities for young professionals, San Jose is a highly desirable living destination. For real estate investors, this has meant 83.2% of listings sold above their asking prices. However, it is also resulting in a rapid shrinking of available housing units.
What are the Best Neighborhoods to Invest in San Jose?
Some of the most popular neighborhoods in San Jose are Cambrian, Bucknall and White Oak. While the prices are high, the market experiences shift every now and then, which makes it possible for real estate investors to seize their ideal opportunities. Even in the rest of San Jose, there are plenty of chances to make a good profit, especially from renting..
Getting Started in Real Estate Investing? HomeUnion® Can Help
HomeUnion® is the leader in residential real estate investment. With the use of big data and machine learning, we analyze information on millions of single family homes in San Jose, CA; and across the United States and calculate home values RENTestimate for every property in San Jose, CA. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.