Rents in Silicon Valley Cities Jump More Than 10%

Real Estate Agent with Silicon Valley Real Estate

Landlords are raising their rents to the tune of 15.9% year-over-year in Silicon Valley cities like Palo Alto knowing there will still be healthy demand for their homes.  The San Jose Business Journal publishes data from RealFacts Inc. which shows dramatic increases in rent.  The article covers San Jose, Sunnyvale, Mountain View, Santa Clara, Campbell, Cupertino, Palo Alto, and other cities in the area.

Comments (2)

Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley Realtor since 1976; 408-373-4411
Thanks.  A couple years ago, when everyone could buy a home, vacancy rates increased.  I think they increased to about 7-8% which is the highest they've been since I started selling real estate in Santa Clara county in 1976.  People who normally would be tenants became home buyers because they could purchase a home with 100% financing, stated income and less than stellar credit.  Now, that trend is reversing.  Fewer people can qualify to purchase a home and more people are, therefore, renting.
Oct 19, 2007 04:40 AM
Steve Leung
Silicon Valley Real Estate - Cupertino, CA

People substitute one home for another, whether they rent or purchase, and easy credit terms artificially lowered the entry cost into home ownership --- at least for a little while.  Some of my clients are saying that their landlords have already warned them of a large rent increase when their leases are up.  Cyclical. 

In Silicon Valley, home ownership is more expensive than renting (many times because the potential for appreciation is built-in) but as renting gets more expensive, the benefits of home ownership cost less in relative terms.  

Oct 19, 2007 09:04 AM