Low homeownership rates within the San Jose metro suggest the demand for single-family rental homes will expand this year.According to HomeUnion, rents at single-family homes are expected to rise by 7.3 percent year-over-year, with the average rent climbing to $3,459.This more than seven percent rise will make the metro the top market nationally for single-family rent growth in 2016.Low homeownership in San Jose Within the San Jose metro, basically Santa Clara County, HomeUnion is currently tracking 334,000 single-family homes. According to Steve Hovland, manager of research services at the firm, 45.4 percent of those homes are owner-occupied-- the lowest homeownership rate among the nation's largest markets.Of the roughly 180,000 single-family homes that are not owner-occupied, about half are rentals.The majority of these rentals are owned by "retail buyers" rather than institutional investors that purchase 10 or more homes within the metro each year. Currently...
- There are nearly 100,000 single-family rentals in the San Jose metro.
- Single-family homes in San Jose are purchased at an average cap rate of 3.3 percent.
- San Jose's median household income is just below $100,000.