SAN JOSE (KCBS) – More people want to live in San Jose thanks to growth in the technology sector fueled by social media, making the greater San Jose area one of the most expensive rental markets in the Bay Area.
Apartments in the San Jose Metropolitan Area cost $1,759 on average, up 12.6 percent from last year, according to RealFacts, a company that tracks residential rents.READ MORE: Tsunami Alert Forces Daylong Evacuation of Berkeley Marina
KCBS’ Matt Bigler Reports:
Rental prices in San Francisco by contrast averaged $1,600.
Economist Chris Thornberg of Beacon Economics credited recent investment at Bay Area companies with creating a “mini tech rush” that’s driven up rents.READ MORE: Pacific Tsunami Update: Waves Surge Onto Bay Area Beaches Following Huge Tonga Volcano Blast
“There’s a lot of capital flowing into the area. There’s a lot of interest in these new, upcoming companies, not to mention, of course, the big giants that already exist,” Thornberg said.
“Clearly on a supply and demand basis, San Jose is where it’s at at this particular point in time,” said Thornberg said.
Those high rents can weigh down the bottom line at a company struggling to compete as employees demand higher salaries to be able to afford living in the Bay Area.
“Ultimately this is probably one of the biggest taxes on California businesses,” Thornberg said.MORE NEWS: Bengals Stop Late Raiders Rally; Vegas One and Done in Playoffs
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