A report from Marcus & Millichap Research Services found the San Jose Metropolitan area has the tightest apartment market in the nation, the San Jose Business Journal reports.
According to the source, the report listed San Jose's vacancy rate as 3.1 percent for the third quarter, compared to an average of 5.6 percent in the nation's metro areas. Average asking rents were $1,506 per month, significantly above the $1,048 U.S. average for the quarter.
The researchers predicted asking rents will climb even higher to reach $1,525 per month by the end of the year, 5.4 percent higher than 2010. They also expect the trend to continue into 2012, pushing average asking rents as high as $1,615 per month.
Real estate information from the firm indicates particular areas are displaying their own strengths and signs of activity. The Mountain View/Los Altos markets, according to the source, lead the region in new units scheduled to break ground during the next nine months, while Mountain View's class A apartment rents have increased more than 5 percent this year already.
South Bay, on the other hand, has 1,216 rental units under construction and is expected to strengthen in the short term due to projected job creation.