San Jose has among the most expensive real estate prices in America. This has spilled over into rent prices. Not only does the city have among the most expensive rents, but that figure is expected to spike 7.8% this year, the largest jump among all major metropolitan areas.
According to real estate research firm Zillow, rent prices across all metro areas will be close to flat this year:
Rent appreciation will level off over the next 12 months, slowing to an annual rate of 1.1 percent by December 2016, according to the new Zillow Rent Forecast. The national Zillow Rent Index at the end of 2016 is projected to be $1,396 — compared to $1,381 in December 2015.
Rental rates are not only going to rise in San Jose. They are among the highest in the country already at $3,699. By contrast, the city with the lowest average rent among all major metros is Pittsburgh at $1,079, and that number is forecast to drop 1% this year:
“Hot markets are still going to be hot in 2016, but rents won’t rise as quickly as they have been,” said Zillow Chief Economist Dr. Svenja Gudell. “The slowdown in rental appreciation will provide some relief for renters who’ve been seeing their rents rise dramatically every single year for the past few years. However, the situation remains tough on the ground: rents are still rising and renters are struggling to keep up.”
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