Tech Scene Stays Hot, Rent Growth Cools in San Jose
BySilicon Valley is the nation’s largest tech hub, a top-performing venture capital market and one of the most prominent locations for startups. The metro continues to thrive as an attractive destination for businesses and young, educated workers, as a result of consistent employment and wage growth. However, the rental market is cooling as San Jose becomes increasingly unaffordable, even for higher-paid workers. Rents dropped 1.3 percent year-over-year through May to $2,675, more than double the national average.
Employment gains were led by professional and business services, which added 6,900 jobs. The construction sector also gained traction, as a result of the Bay Area Rapid Transit (BART) Silicon Valley Extension. The 10-mile, $2.3 billion-dollar project is scheduled for completion in December and will create two additional metro stations: Milpitas and Berryessa. The project sparked investor interest, as Lyon Capital Ventures and Clayco Realty Group’s two communities are already under construction in Milpitas, with more than 370 units each…
