The average rent in San Jose is $1569 for a 2-bedroom apartment. According to San Jose Mercury News. This has been a steady increase since the beginning of the year. Most Bay Area cities retail have gone up 5% to 10% this year.
Several reasons attribute to the rent hike:
1. Good job market and new hirings in Bay Area.
2. Gasoline price has been fluctuated since the spring. Bay Area still has the highest gas price of the nation.
3. Groceries in general has gone up. Cost of living is higher.
4. Inflation worries.
5. Apartment managers have upgraded complex to make properties more attractive to renters. And those expenses have to subsidies from consumers.
With bad news from sub-prime markets and low affordability rate in the State, renters will stay in their rental apartments for a while until there’s clearer signs from economic indeices.