HomeUnion names San Jose top single-family rental market in the nation

  • 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.

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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...